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Customer Relationship Management (CRM) Implementation within the Banking

and Mobile Telephony Sectors of Nigeria and South Africa.
Thesis · January 2010

DOI: 10.13140/RG.2.1.1301.0408
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Customer Relationship Management (CRM)
Implementation within the Banking and Mobile
Telephony Sectors of Nigeria and South
Africa.
By
Nathalie Beatrice Chinje
(Candidate Number: 500189)
Supervisor: Prof Geoff Bick
A thesis submitted to Wits Business School, Faculty of Commerce, Law

and Management, University of the Witwatersrand, Johannesburg, in
fulfillment of
the Degree of Doctor of Philosophy.
September 2013
i
APPROVAL FROM THE PhD COMMITTEE
We hereby certify that this Dissertation entitled “Customer Relationship

Management (CRM) Implementation within the Banking and Mobile Telephony
Sectors of Nigeria and South Africa” submitted by Ms Nathalie Beatrice CHINJE
conforms to the required standards, and as such is fully adequate in scope and
quality. It is therefore approved as the fulfillment of the Dissertation requirements
for the PhD Degree in Management.
Approved by:
----------------------------------------------------- --------------------------------------------
Name and Surname, Position, Institution Date
----------------------------------------------------- --------------------------------------------
----------------------------------------------------- --------------------------------------------
----------------------------------------------------- --------------------------------------------
----------------------------------------------------- --------------------------------------------
ii
DISSERTATION DECLARATION
I hereby declare that this thesis is my own unaided work except where due
recognition has been given. It is submitted for the degree of Doctor of Philosophy at
the University of the Witwatersrand, Johannesburg in South Africa. It has not been
submitted before for any other degree at any other university.
……………………………….
Nathalie Beatrice CHINJE

September 2013
iii
Abstract
In recent years, emerging markets have become the main “engine of global
(economic) growth” (Spence, 2011, p. 8) . Whilst the rapid diffusion of its banking
and mobile telephony industries has been unprecedented and well documented in
the literature (Bankole, Bankole, & Brown, 2011; Bick, Brown, & Abratt, 2004;
Brahima, 2012; Kalba, 2008), the dearth of empirically based evidence on CRM
implementation in emerging markets in general, and Nigeria and South Africa (SA)
in particular, remains undisputed (Kumar, Sunder, & Ramaseshan, 2011; Sheth,
2011).
Consequently, the problem this research addresses is the lack of adaptation of

CRM strategies to the emerging market context and the lack of understanding of
contingency factors that may inhibit or enable the effectiveness of CRM
implementation in companies. To provide further insights into this issue, sixty six
(66), one-on-one, semi-structured interviews were conducted with CRM strategy
developers, implementers and those fulfilling both roles in four companies across
the banking and mobile telephony sectors of Nigeria and South Africa. Secondary
data were also collected and triangulated with the findings derived from the primary
research to enhance the rigour of this research process; and most importantly, to
strengthen the reliability and validity of the research findings. The collected data
was recorded, transcribed and analysed using a contact summary form and
MAXQDA analysis, a qualitative data analysis software package.
The research findings illustrate that whilst some of the factors for CRM
effectiveness in Nigeria and South Africa may be consistent with those in high
income, industrialized markets, the peculiarities of Nigeria and South Africa require
that companies adapt their CRM strategies to the local context. The contingency
factors that can either impede on or enhance effective CRM implementation in
these countries include (a) multichannel integration (particularly informal channel
and social media), (b) operating structure, (c) training and staff recruitment
iv
practices, (d) customer data storage and mining capabilities as well as (e)
normative motives linked with the socio-cultural context of the country.
The similarities and differences between Nigeria and South Africa are also
highlighted in this study.
The originality of this study lies in it clearly defining the peculiarities of CRM in
emerging markets, thereby establishing that these markets are different from high
income, industrialized markets.
In addition, this study identifies the contingency factors that can enhance or impede
on CRM success in these markets and puts forward a set of research propositions
as well as a conceptual model for CRM implementation in emerging markets as a
contribution to the body of knowledge. This CRM conceptual model can be tested
in future research.
Building on these findings, the study makes suggestions on how the strategy of
CRM can be adapted to the emerging market context. It proposes that companies
assess their CRM readiness through the application of a newly developed heat
map that takes into consideration the company lifestage and its industry saturation
level. This heat map is a useful tool for organisations to ascertain whether or not
they are ready to embark upon the CRM programme, to better understand the
required efforts needed to deliver on a successful CRM programme as well as the
expected timelines for true benefits realisation. Moreover, another contribution of
this research is the development of a CRM index, a composite index of 16
indicators that measures CRM success across three dimensions; namely
organisational, institutional and customer data.
Furthermore, the novelty of this research can also be found in the triangulation of
theories such as the contingency, institutional, and Hofstede’s fifth national value
dimensions of culture that focuses on a short vs. long-term orientation of cultures
and companies, are integrated into a single study.
v
This study has theoretical, managerial, conceptual, methodological and societal
implications. Future research could include other geographies, industries, a
longitudinal study and quantitative studies based on the testing of the proposed
CRM conceptual model and index.
Key words: Africa, banking, cross-case analysis, CRM, Emerging Market,

high income, industrialized markets, Nigeria, relationship marketing, services
marketing, South Africa, within case analysis.
vi
Dedications
This PhD report is all about Africa, this new investment frontier and the main
destination for companies that are keen on achieving sustained returns in what was
once known as the gloom and dark Continent. It is also a culmination of what I have
learnt as an entrepreneur, consultant, corporate employee and academic over the
past 14 years, about customers, relationship building, services marketing,
institutions and businesses in Africa. Throughout those years, my learning
experience was heightened by the many engagements I had with various people
and organizations across the world—either face to face or virtual. Although I cannot
thank them all in this report, I find it necessary to acknowledge a select few
numbers of those individuals and organizations that have supported me throughout
my PhD journey which now spans four years.
First, I would like to express my deepest gratitude to the organizations that willingly
accepted to be the unit of analysis in this research. Specifically, I refer to the
banking and mobile companies of South Africa and Nigeria. Your employees were
open and freely engaged with me during the one-on-one meetings and thereafter,
they were available to provide further clarity on the topics that were discussed.
Second, I would like to thank the international institutions that hosted me as an

International visiting scholar; namely Prof Jean-Charles Chebat at HEC-Montreal in
Canada where I joined his chair on Advertising Space and Customer Services. In
addition to him, Prof Ann Langley, also from HEC Montreal, was able to guide me
through the rigour required in the delivery of a robust qualitative research
manuscript. To both of you, words cannot express my deepest gratitude.
At Stern School of Business, I thank Prof Vishal Singh for affording me the
opportunity to hone my analytical skills and to establish networks within the New
York University academic and practitioner communities. These have proved to be
invaluable to me.
vii
Third, I would like to recognize my marketing colleagues at the Marketing
Association of South Africa (and specially John Svenoaks) for their unconditional
support.
Fourth, to my family- specially my children, Kezie (17) and Jemmie (11), and my
husband, Inno, you have always been my bedrock. I am grateful for your continued
support. To my sister, Carine Flore Sanama, for her unconditional love and support
throughout these years, a Big THANK YOU.
Fifth, to my sponsors, Tata Africa, Wits University, New York University, Academy
of Marketing Sciences (USA), and Upbeat marketing (South Africa), you played an
important role in helping me fulfill my PhD journey.
Last but not least, to my study Leader and Mentor, Prof Geoff Bick, who has guided
me throughout these past years, your patience and extreme support have helped
me to be resilient and to look continuously for ways to enhance my research report.
I believe that this report will be a catalyst in companies for rethinking their customer
strategies. In addition to this, I sincerely hope that it can enable them to find
innovative ways to develop and implement CRM programmes that will not just
generate sustained profits for these companies; but also delight their customers, all
the time.
viii
Table of Contents
Page
List of Figures ............................................................................................................ xiv
List of tables ............................................................................................................... xv
List of appendices..................................................................................................... xvii
Abbreviation and acronyms ..................................................................................... xviii
CHAPTER 1: INTRODUCTION ................................................................................... 1
1.1 Context of the Study ..................................................................................... 1
1.2 Problem Statement ....................................................................................... 7
1.3 Purpose Statement and Key Research Questions ..................................... 8
1.4 Knowledge Gap ............................................................................................. 9
1.4.1 CRM conceptual gap ................................................................................ 9
1.4.2 Theoretical gap....................................................................................... 10
1.4.3 Methodological gap ................................................................................ 11
1.4.4 Managerial gap ....................................................................................... 11
1.4.5 Societal gap............................................................................................ 11
1.5 Brief Research Methodology ..................................................................... 12
1.6 Thesis Structure and Map .......................................................................... 14
ix
CHAPTER 2: THEORETICAL FRAMEWORK ......................................................... 17
2.1 Contingency Theory ................................................................................... 17
2.1.1 Overview and definition of the contingency theory ................................. 18
2.1.2 Application of the contingency theory to the broad management context19
2.1.3 Limitation of the contingency theory ....................................................... 20
2.1.4 Relevance of the contingency theory to this study ................................. 21
2.2 Institutional Theory .................................................................................... 22
2.2.1 Overview and definition of the institutional theory .................................. 22
2.2.2 Application of the institutional theory to the broad management context 25
2.2.3 Limitation of the institutional theory ........................................................ 26
2.2.4 Relevance of the institutional theory to this study................................... 27
2.3 Culture Theory: Hofstede’s Fifth Value Dimensions of National Culture29
2.3.1 Overview and definition of the institutional theory .................................. 32
2.3.2 Application of the Hofstede’s theory to the broad management context . 33
2.3.3 Limitation of the Hofstede’s theory ......................................................... 34
2.3.4 Relevance of Hofstede’s fifth value dimension to this study ................... 35
CHAPTER 3: LITERATURE REVIEW ...................................................................... 38
3.1 CRM Concepts Definition ........................................................................... 38
3.1.1 What is a relationship? ........................................................................... 38
3.1.2 CRM defined .......................................................................................... 41
3.1.3 CRM- related concepts ........................................................................... 45
3.2 Antecedents to Successful Customer Relationship Management ......... 49
3.2.1 The high income, industrialised markets perspective ............................. 49
x
3.2.2 The emerging markets perspective ........................................................ 53
3.2.3 Synthesis and key insights ..................................................................... 56
3.3 Benefits and Challenges of Customer Relationship Management ......... 60
3.3.1 Introduction............................................................................................. 60
3.3.2 Benefits .................................................................................................. 61
3.3.3 Challenges ............................................................................................. 63
3.4 Market Analysis .......................................................................................... 66
3.4.1 Nigerian and South African contexts ...................................................... 66
3.4.2 Characteristics of the banking and mobile telephony sectors ................. 71
CHAPTER 4: RESEARCH METHODOLOGY .......................................................... 82
4.1 Introduction ................................................................................................. 78
4.2 Research Design and Paradigm ................................................................ 81
4.2.1 Research design and motivation for the selected research method ....... 81
4.2.2 Research paradigm ................................................................................ 83
4.3 Population and Sample .............................................................................. 86
4.3.1 Definition of key concepts: Population and sampling ............................. 86
4.3.2 Sample selection .................................................................................... 90
4.4 Procedure for Data Collection ................................................................... 93
4.4.1 Data collection process .......................................................................... 93
4.4.2 Data sources .......................................................................................... 95
4.4.3 Research instrument and protocol .......................................................... 97
4.4.4 Methods of data analysis and interpretation ........................................... 98
4.5 Criteria for High Quality Research Design and Analysis ............................. 100
xi
CHAPTER 5: CASE STUDY RESULTS – Focus on a bank (SABA) and a
mobile telephony (SATEL) company in South Africa......................................... 110
5.1 Introduction .............................................................................................. 110
5.2 Results from CRM Implementation at SATEL ........................................ 110
5.2.1 Overview of the “As is” CRM implementation at SATEL ....................... 110
5.2.2 Presenting CRM results at SATEL under the three dimensions of

organizational, institutional and customer data factors .................................. 116
5.3 Results from CRM Implementation at SABA .......................................... 121
5.3.1 Overview of the “As is” CRM implementation at SABA ........................ 121
5.3.2 Presenting CRM results at SABA under the three dimensions of

5.4 Summary and Key Insights ...................................................................... 131
CHAPTER 6: CASE STUDY RESULTS – Focus on a bank (NIBA) and a mobile

telephony (NITEL) company in Nigeria ................................................................ 133
6.1 Introduction .............................................................................................. 133
6.2 Results from CRM Implementation at NITEL .......................................... 133
6.2.1 Overview of the “As is” CRM implementation at NITEL ........................ 133

6.3 Results from CRM Implementation at NIBA ........................................... 146
6.3.1 Overview of the “As is” CRM implementation at NIBA .......................... 146

6.4 Summary and Key Insights ...................................................................... 154
xii
CHAPTER 7: CROSS-CASE STUDY RESULTS – Focus on a bank (NIBA) and
a mobile telephony (NITEL) company in Nigeria ................................................ 156
7.1 How is CRM Implementation in Emerging Markets Different from High

Income, Industrialized Markets? ................................................................... 157
7.1.1 Factors Affecting CRM Implementation in Emerging Markets: A

consolidated view based on the SATEL, SABA, NITEL and NIBA case studies157
7.1.2 Contrasting research findings from CRM implementation in emerging

markets against high income industrialised countries ................................... 177
7.2 What Are the Contingency Factors That Could Contribute Towards CRM
Success or Failure in Emerging Markets?.................................................... 186
7.3 How Can the CRM Strategy Be Adapted to the Emerging Market
Context? .......................................................................................................... 187
CHAPTER 8: CONCLUSIONS AND RECOMMENDATIONS ................................ 188
8.1 Conclusions .............................................................................................. 188
8.2 Recommendations .................................................................................... 195
8.2.1 Assessing the readiness of companies to implement CRM .................. 196
8.2.2 Designing and implementing a CRM index for Emerging Markets ....... 199
8.3 Implications ............................................................................................... 204
8.3.1 Managerial implications ........................................................................ 204
8.3.2 Theoretical implications ........................................................................ 206
8.3.3 Methodological implications.................................................................. 208
8.3.4 CRM conceptual implications ............................................................... 209
8.3.5 Societal implications ............................................................................. 210
8.4 Limitations................................................................................................. 211
8.5 Directions for Future Research ............................................................... 212
References ...................................................................................................... 214

xiii
List of Figures
Figure 1-1: Thesis structure and map ........................................................................ 16
Figure 2-1: The theoretical framework ....................................................................... 17
Figure 3-1: The relationship development process .................................................... 40
Figure 3-2: Feedback loop between operational and analytical CRM ....................... 45
Figure 3-3: CRM critical success factors.................................................................... 52
Figure 3-4: Global mobile subscriptions by regions Q4 (2011).................................. 75
Figure 3-5: South Africa, low user basket in Rand (ZAR) .......................................... 78
Figure 3-6: Market share of mobile operators in Nigeria (December 2011) .............. 79
Figure 4-1: The research process .............................................................................. 83
Figure 5-1: “As Is” CRM implementation at SATEL ................................................. 112
Figure 5-2: “As Is” CRM implementation at SABA ................................................... 124
Figure 6-1: “As Is” CRM implementation at NITEL .................................................. 138
Figure 6-2: “As Is” CRM implementation at NIBA .................................................... 149
Figure 7-1: CRM implementation conceptual model for emerging markets ............ 159
Figure 8-1: Heatmap of CRM predicted failure/success rate ................................... 197
xiv
List of Tables
Table 1-1: Projected real growth rates of 21 emerging market economies for the
period 2007-50 (% per annum) ............................................................................... 3
Table 2-1: Long-term orientation index and factor scores of 23 countries and
regions ........................................................................................................................ 36
Table 3-1: An overview of CRM-related concepts ..................................................... 47
Table 3-2: Review of critical CRM success factors in industrialised markets ............ 53
Table 3-3: Contrasting emerging and developed market views on CRM success
factors ......................................................................................................................... 58
Table 3-4: The divergent measures of CRM implementation success ...................... 62
Table 3-5: The divergent measures of CRM implementation failure ......................... 65
Table 3-6: Assessment of the Nigerian and South African contexts.......................... 67
Table 3-7: Top 10 world’s banks by market capitalisation ......................................... 72
Table 3-8: Top banks in Africa ................................................................................... 73
Table 3-9: Worldwide mobile sales by vendor during Q4 (2011) ............................... 76
Table 4-1: Description of research activities by research stage ................................ 84
Table 4-2: Four categories of scientific paradigm and their elements ....................... 89
Table 4-3: Overview of companies involved in this study .......................................... 92
Table 4-4: Sample description.................................................................................... 93
Table 4-5: Data sources and application to the study .............................................. 100
xv
Table 4-6: CRM construct measurement properties ................................................ 103
Table 4-7: Criteria for judging quality in case study research .................................. 105
Table 5-1: Organisational factors with impact on SATEL CRM programme ........ 115
Table 5-2: Institutional factors with impact on SATEL CRM programme ............. 118
Table 5-3: Customer data factors with impact on SATEL CRM programme ........ 120
Table 5-4: Organisational factors with impact on SABA CRM programme .......... 126
Table 5-5: Institutional factors with impact on SABA CRM programme ............... 129
Table 5-6: Customer data factors with impact on SABA CRM programme .......... 130
Table 6-1: Organisational factors with impact on NITEL CRM programme .......... 140
Table 6-2: Institutional factors with impact on NITEL CRM programme ............... 143
Table 6-3: Customer data factors with impact on NITEL CRM programme ......... 145
Table 6-4: Organisational factors with impact on NIBA CRM programme ........... 151
Table 6-5: Institutional factors with impact on NIBA CRM programme ................ 153
Table 6-6 Customer data factors with impact on NIBA CRM programme ............ 154
Table 7-1: Equation model of CRM implementation in EMs ................................. 158
Table 7-2: Legend ................................................................................................ 178
Table 7-3: Contrasting Ems findings against CRM literature in HICs ................... 180
Table 7-4: Equation model of CRM contingency factors ...................................... 186
Table 8-1: Consistency matrix linking research questions, findings and suggested
propositions.......................................................................................................... 189
Table 8-2: Summary of CRM factors in EMs ........................................................ 191
Table 8-3: Legend on CRM predicted success/failure rate and key strategic actions
............................................................................................................................. 198
Table 8-4: CRM implementation index ................................................................. 200
xvi
List of Appendices
A. Discussion Guide ................................................................................................. 229
B. Meta-Analysis of CRM Benefits ........................................................................... 236
xvii
Abbreviations and Acronyms
ACRM Analytical Customer Relationship Management
BRIC Brazil, Russia, India and China
BRICS Brazil, Russia, India, China and South Africa
CIBN Chartered Institute of Bankers in Nigeria
CBN Central Bank of Nigeria
CCT Consumer Culture Theory
CoE Centre of Excellence
CEO Chief Executive Officer
CRM Customer Relationship Management
EMs Emerging Markets
FO Future Orientation
G-6 It represents the top 6 industrialized countries in the world;

namely United States of America (USA), Japan, France,
Germany, United Kingdom (UK) and Italy
GDP Gross Domestic Product
HICs High Income, Industrialised Countries
HNWI High Net Worth Individuals
ICT Information, Communications and Technology
IT Information Technology
JIT Just-in-Time
LTO Long-term Orientation
LTV Life time value
MRP Materials Resource Planning
NCC Nigerian Communication Commission
NDIC Nigerian Deposit Insurance Corporation
OCRM Operational Customer Relationship Management
RBV Resource-Based View
STO Short-Term Orientation
WEF World Economic Forum
xix
CHAPTER 1: INTRODUCTION
This chapter introduces the research topic by focusing on: (1) the context of the
study, (2) the problem statement, (3) the purpose statement and key research
questions, (4) the knowledge gap and (5) a brief research methodology. It
culminates with (6) the thesis structure.
1.1 Context of the Study
In recent years, emerging markets have become the main “engine of global
(economic) growth” (Spence, 2011, p. 8). This is evidenced by D. Wilson and
Purushothaman (2006) strikingly optimistic projections about the future economic
outlook of emerging markets. They forecast that the BRICs countries which, in
2003 represented 15% of the G6 could account for more than half its size by
2025, with only the United States of America (USA) and Japan remaining
amongst the 6th largest economies in the world.
In support of this meteoric rise of emerging markets, Sheth (2008) explicates the
profound impact that China and India are already having on the global economy.
He notes that the debate is no longer about “whether the Chindia tide is rising,
rather what impact its waves will have along the shorelines of the world
economy” (Sheth, 2008, p. 4). Hitt, Haiyang, and Worthington (2005) further
supports the idea that emerging markets have become attractive to foreign
entrants and also that these markets are increasingly contributing to the world’s
economic development.
Africa has not been left out as part of this important debate of emerging markets’
impact on the world economy. Accordingly, Ghose (2012) comments that, at the
last World Economic Forum (WEF) held in Davos in January 2012, whilst
uncertainties prevailed amongst observers on the USA, European and even
some emerging market economic prospects, “the only beacon of hope was
Africa”. Moreover, in the recently published 2011 World Economic Outlook
report, it is projected that sub-Saharan African economic activities are to remain
relatively strong throughout this year (Blanke et al., 2011). Furthermore, the
inclusion of South Africa in the BRICS fold also heightens the crucial role Africa is
playing on the world economic growth. To amplify the debate on emerging
markets, Hawksworth and Cookson (2008) have suggested a broader view of
emerging market prospects, one that goes beyond the BRICs countries. They
have projected that by 2050, Nigeria will become one of the top emerging market
economies, even surpassing South Africa and Egypt in Africa; and other
countries such as Russia, Indonesia, Turkey and Brazil.
They have demonstrated that, although Nigeria now appears to be a high risk
proposition, its position can be turned around, specially if the country can
“achieve and sustain a greater degree of political stability and economic
openness in the long term”(Hawksworth & Cookson, 2008, p. 4). In table 1-1,
they provide an illustration of the projected growth rates of the top 21 emerging
market economies for 2007-2050. South Africa and Nigeria are both included in
this analysis.
In a nutshell, this table shows that the GDP per capita at purchasing parity power
growth rate of Nigeria will be 4.4% whilst only 3.3% for South Africa. Likewise,
the Nigerian population will grow much faster at 1.6% whereas the South African
population will only grow at 0.3%. As the Nigerian population currently stands at
over 160 million inhabitants, which represents three times the size of South
Africa, the additional growth of 1.6% will make it a serious player in emerging
economies.
2
Table 1-1: Projected real growth rates of 21 emerging market economies for
the period 2007-50 (% per annum)
GDP in domestic Population growth GDP per capita at

Country GDP in US$
currency or at PPPs projection PPPs
Vietnam 9.8 6.8 0.8 6

India 8.5 5.8 0.8 5
Nigeria 8 6.1 1.6 4.4
Philippines 7.2 5.2 1.1 4.1
Egypt 7.1 5.1 1.1 3.9
Bangladesh 7 5.1 1.1 3.9
China 6.8 4.7 0.1 4.6
Indonesia 6.7 4.5 0.6 3.9
Pakistan 6.4 4.9 1.4 3.5
E7 average 6.4 4.5 0.5 4
Malaysia 5.8 4.3 1 3.3
Thailand 5.7 3.6 0.1 3.5
Iran 5.2 3.8 0.8 3
Brazil 5.2 3.8 0.7 3.1
Turkey 5.1 4.1 0.7 3.4
Argentina 4.9 3.7 0.3 3.3
South Africa 4.8 3.7 0.3 3.3
Saudi Arabia 4.8 4.1 1.4 2.7
Mexico 4.7 3.7 0.5 3.2
Russia 4.3 2.5 -0.6 3.2
Poland 3.4 2.1 -0.5 2.7
G7 average 2 2.2 0.3 1.9
Source: (Hawksworth & Cookson, 2008), adapted from PricewaterhouseCoopers GDP growth
estimates (rounded to nearest 0.1%), population growth projections from the UN. E7* and G7**
averages shown in bold only.
Likewise, practitioners and other academic scholars have noted and even
documented Africa’s current and prospective growth. They are confident that its
current growth momentum will continue and as a result, they have encouraged
businesses to include Africa in their internationalization plans (Leke, Lund,
Roxburg, & Wamelen, 2010; Mahajan, 2009; Nwankwo, 2011).
3
Mahajan (2009, p. xi) best summarizes Africa’s economic development in these
terms:
“This new era is rooted in a powerful truth: (...) the true wealth of Africa is
rooted in more than its 900 million consumers. This is one of the fastest
growing markets in the world”.
In light of the above, it cannot be argued that as “the last century was about
marketing in the advanced economies; this century is likely to be about marketing
in the emerging markets” (Sheth, 2011, p. 166). Sheth (2011) warns though that
marketing fundaments of customer segmentation or even market orientation are
at odds with the realities of emerging markets. For that reason, he calls for a
paradigm shift in the way products are developed or marketed in emerging
markets. Burgess and Steenkamp (2006) concur. Similarly, they are vocal about
the dearth of marketing research on emerging markets:
“The existing body of research suffers from an important limitation, viz.;

most of it has been conducted in high income, industrialized countries
(HICs). Although it is understandable that researchers in our maturing
discipline would initially focus on the world's most advanced economies,
we believe it is paramount for the future of marketing science and practice
that we conduct more research in so-called emerging markets (EMs)”
(Burgess & Steenkamp, 2006, p. 338).
The CRM discipline is no exception to this anomaly depicted earlier by Burgess

and Steenkamp (2006), as the dearth of empirically based evidence on CRM
implementation in emerging markets, in general, remains undisputed (Kumar et
al., 2011).
The in-depth literature review on CRM shows that although it has been widely
implemented in industrialized markets (Chen & Popovich, 2003; Hsin Hsin, 2007;
4
Mendoza, Marius, Pérez, & Grimán, 2007; H. Wilson, Daniel, & McDonald, 2002),
the preponderance of customer centricity in organizations has only gained
momentum recently in emerging markets. Emerging markets that have
spearheaded the adoption of CRM include Asia, Scandinavia and a select
number of countries in South America. Within the broad African context, empirical
research has been conducted on CRM in North Africa, and Egypt in particular (Ali
& Brooks, 2009). Sub-Saharan Africa is still lagging behind regarding the number
and the scale of CRM initiatives that are being implemented and published in the
academic literature.
Because this study focuses on CRM in emerging markets, it was found propitious
to define these two important concepts of “CRM” and “Emerging markets”.
The available literature on CRM presents numerous definitions of what CRM is,
thereby prompting this view that “CRM means different things to different people”
(Winer, 2001, p. 91). This plethora of definitions has created some confusion on
its true meaning (Iriana & Buttle, 2007; Jayachandran, Sharma, Kaufman, &
Raman, 2005; M. Meyer & Kolbe, 2005; Pedron & Saccol, 2009; Troy, 2008). For
example, CRM has been referred to as technology (Christopher, 2003; Hart,
2006; Nguyen, 2011), a business strategy (Buttle, 2009; Payne & Frow, 2006;
Reinartz, Krafft, & Hoyer, 2004) and sales (Ahearne, Rapp, Mariadoss, &
Ganesan, 2012). Similarly, Keramati, Mehrabi, and Mojir (2010) and Srivastava,
Shervani, and Fahey (1999) define CRM as a set of processes for managing
relationships with customers and suppliers across marketing, sales and services.
Greenberg (2001) asserts that CRM is linked with company philosophy. For the
purposes of this study, CRM is defined as being:
“A core business strategy that integrates internal process and functions,

and external networks, to create and deliver value to targeted customers
at a profit. It is grounded on high quality data and enabled by IT” (Buttle,
2009, p. 15).
5
Similar to the concept of CRM, there are various definitions of emerging markets.
The World Bank (2007) defines emerging markets as those economies with a
GNI of US$ 11 456 or less per capita ("Emerging Markets Definition and World
Market Segments," 2009). Spence (2011) notes that according to the World
Bank, an emerging market is one with a GDP per capita that exceeds US$
10 000. In a recent study on emerging markets, Sheth (2011) identifies five
characteristics of emerging markets consisting of (a) market heterogeneity:
Emerging markets are fragmented markets with a significant portion being at the
bottom of the pyramid and having difficulties in accessing clean water or
electricity; (b) socio-political governance: The governance of the market is done
by business groups, religions rather than competition; (c) Unbranded competition:
There is a wide proliferation of unbranded products. The barter exchange
offerings are widely adopted; (d) chronic shortage of resources: This is evidenced
with power outages and limited skills available in the market; and (e) inadequate
infrastructure such as poor roads, technology infrastructure or limited market
transaction enablers such as credit card facilities.
In the context of this study, the term emerging markets refers to the two sub-
saharan countries that are listed in the 2008 Pricewaterhouse Coopers report
which includes Nigeria and South Africa (Hawksworth & Cookson, 2008). These
two countries have the largest total GDP size in sub-saharan Africa.
Although the above-mentioned views on emerging markets and CRM are

relevant, outstanding issues related to the adaptation of CRM programmes and
the contingency factors of CRM in emerging markets remain scant in the CRM
literature.
6
1.2 Problem Statement
The problem this research addresses is the lack of adaptation of CRM strategies
to the emerging market context and the lack of understanding of contingency
factors that may inhibit or enable the effectiveness of CRM implementation in
organisations.
Whilst the extant CRM literature provides empirical evidence on key CRM
success factors which have mainly derived from studies conducted in high
income, industrialized markets (K. Chan, 2008; Chen & Popovich, 2003;
Mendoza et al., 2007; H. Wilson et al., 2002), companies that operate in
emerging markets should be cognizant of the contingency factors that can
strengthen or impede on their local CRM efforts.
Within the context of Africa, global companies are taking note of the positive
socio- economic developments that are occurring in this market. These include:
Enhanced democracy; political and macro-economic stability; improved legal
structures; faster population growth than in matured markets; expected high
investment returns; economic openness, specially with regard to international
trade (Kasekende, Oshikoya, Ondiege, & Dasah, 2008; Leke et al., 2010). These
global companies are now setting up operations in Africa with the view to attract
and retain local customers (Mahajan, 2009). However, these companies
(together with domestic-owned companies) have been shown to adopt CRM
models that were developed elsewhere without adapting these models to the
unique CRM landscape of emerging markets. Consequently, these CRM models
have not been successful (Almotairi, 2010). In a study that focuses on strategies
that fit emerging markets, Khanna, Palepu, and Sinha (2005, p. 64) assert that
CEOs in developed, industrialized markets cannot assume that they can do
business the same way in emerging markets “because the quality of the market
infrastructure varies from country to country”. Hence, adaptation to the emerging
market context is required.
7
Consequently, without a clear understanding of the local market environment,
sound business processes and a well-defined strategy, it will inevitably be difficult
for companies to achieve a high success rate in their CRM initiatives (Berndt,
Herbst, & Roux, 2005; Brunjes & Roderick, 2002). Managing and building
customer value is no longer a hype but rather “a fruitful avenue for business
competition” (Rogers, 2005, p. 262).
As company executives are accountable for business targets which may include
amongst others high profit margin, an acceptable return on assets, and improved
customer satisfaction, performance measurement has become an integral part of
their business activities (J. Kim, Choi, Qualls, & Park, 2004; Uzelac & Sudarević,
2006). By incorporating metrics in their CRM strategy, companies can measure,
at a specific point in time, the level of CRM success and failure achieved in
individual national African markets; and accordingly, take swift corrective actions
where and when necessary.
The absence of a concerted effort to identify and understand the unique socio-
cultural, economic and political landscape of Africa’s national markets poses a
major challenge to successful CRM implementation in these African markets.
The main benefits for companies that understand these dynamics of the Africa’s
national markets go beyond adaptation of appropriate strategies to the local
context but also include the mitigation of the potential high failure rate of their
CRM programmes and improved sales and profit.
1.3 Purpose Statement and Key Research Questions
The purpose of this research was to conduct an investigation of CRM

implementation in the banking and mobile telephony sectors of Nigeria and South
Africa. Consequently, the objective of this study was to illustrate that CRM
implementation in emerging markets differs from high income, industrialized
markets. For this reason, organizations that are implementing CRM in the African
context in particular should be cognizant of the peculiarities of Africa and
8
accordingly, they should develop and execute relevant strategies that can
enhance the effectiveness of their CRM programmes whilst reducing their failure
rates. In addition to this, the contingency factors for CRM effectiveness in Africa
are identified in this study and a framework for successful CRM implementation
in an African context is proposed. In order to achieve this purpose, the following
research questions are proposed:
RQ1: How is CRM implementation in emerging markets different from

high income, industrialized markets?
RQ2: What are the contingency factors that could contribute towards
CRM success or failure in emerging markets?
RQ3: How can the CRM strategy be adapted to the emerging market
context?
* RQ= Research Questions
1.4 Knowledge Gap
The gap in the body of knowledge that this study intended to fill could be
categorized into five areas: (1) CRM conceptual, (2) theoretical; (3)
methodological; (4) managerial and (5) societal gaps. Each of the identified gap
areas is further explicated below:
1.4.1 CRM conceptual gap

The discourse on CRM has made a tremendous contribution to CRM in high
income, industrialized markets; whereas emerging markets have lagged behind.
This study attempts to address this imbalance. The originality of this study thus
rested on its ability to highlight the peculiarities of CRM in Nigeria and South
Africa, thereby establishing that these markets are different from high income,
industrialized markets. In addition, the study addressed the question on the
9
contingency factors that can enhance or impede on CRM success in these
emerging markets.
1.4.2 Theoretical gap
The CRM literature pays particular attention to the organizational factors linked
with CRM success and recognizes that these organizational factors are drivers of
CRM practices (Foss, Stone, & Ekinci, 2008; S. King & T. Burgess, 2008;
Mendoza et al., 2007). Moreover, a compilation of studies on CRM (Chakravorti,
2009; Coltman, Devinney, & Midgley, 2009; Gouthier & Schmid, 2003; Keramati
et al., 2010; Wang & Feng, 2012), marketing (Boulding & Christen, 2008; Golder
& Tellis, 1993; Ortega & García-Villaverde, 2011) and management (Fatima,
Rehman, & Ali, 2011; Holtbrügge, Friedmann, & Puck, 2010; Jiang & Zhao, 2012;
Kunc & Morecroft, 2010) as a whole has been developed from the resource-
based view (RBV) approach .
Despite the general tendency to have RBV as the main theoretical lens for CRM
studies as shown above, recently published research conducted by Kirca,
Bearden, and Roth (2011) demonstrates that the institutional theory is gaining
support from the broader marketing community, particularly with regard to
justifying how foreign firms behave in host countries. Hillebrand, Nijholt, and
Nijssen (2011) point to a similar conclusion when they suggest that institutional
processes can be important in explaining the adoption of CRM practices. This
theory focuses on how social pressures from outside organisations influence the
structures and practices of such organisations.
To answer the research questions, the researcher drew on the institutional theory
as well as Hofstede’s fifth national value dimension of culture of short-term vs.
long-term orientation. Furthermore, she applied the contingency theory as the
overarching theory since it indicates that many theories can be used to explain
phenomenon that are evolutionary.
10
1.4.3 Methodological gap
This study concentrated on a multiple embedded case analysis of CRM

implementation in South Africa and Nigeria with an emphasis on the banking and
mobile telephony sectors; whereas the extant literature primarily delves into
CRM implementation in one country such as China (Deng, Lu, Wei, & Zhang,
2010; Shengdong & Xue, 2011), India (Adke & Dhande, 2011; Haridasan &
Venkatesh, 2011; Khare, 2010), Taiwan (Fan & Ku, 2010; Lee, Huang, Barnes, &
Kao, 2010), Saudi Arabia (Almotairi, 2010), and the United Kingdom (Eid, 2007;
Rogers, 2005; H. Wilson et al., 2002).
Moreover, inferences from this study were not just drawn from four within case
analyses; but also from cross-case analyses. The rich data that were generated
helped in addressing the question of analytical generalisability often identified as
a weakness of qualitative studies.
1.4.4 Managerial gap
This study is intended to cast new light on the need for adapting CRM strategies
to the emerging market context. Specifically, it is anticipated to be useful to
practitioners that seek to enhance their CRM programme success rates. It is
hoped this study would shed lights on what CRM is in an emerging market
context by bringing to the fore the peculiarities of each market and contrasting
them against high income countries.
1.4.5 Societal gap
This research intended to make a contribution in social upliftment by ascertaining

how emerging market companies have implemented CRM programmes that
addressed the needs and demands of their customers; and specially what the
overall impact of these programmes have been on companies’ performance,
customers as well as the communities in which they operate.
11
1.5 Brief Research Methodology
Given the scarcity of previous research on CRM implementation in an emerging

market economy, a qualitative research method in the form of a multiple
embedded case study research was adopted against other social research
methods encompassing experiments, histories, surveys, and economic and
epidemiologic research (Yin, 2009). There are valid underlying reasons behind
the choice of this method which will be further expanded on in chapter 4 as it
deals with the research methodology employed in this study.
A total sample size of 66 was determined by a principle of saturation. This

sample size was spread across four companies, of which two were in Nigeria and
two in South Africa. These companies consisted of participants in banking and
mobile telephony sectors who fulfilled one of these roles: a strategy developer,
an implementer, both a strategist and implementer.
Throughout this research, three principles for data collection were considered: (a)
the use of multiple sources of evidence which allowed for triangulation and
strengthened the reliability and validity of the research results; (b) the creation of
a case study database which had to do more with the organizing and
documenting of the data collected (namely transcripts, recorded interviews, email
correspondences, reports, field notes, press releases) for each case study. As
part of this database, folders containing materials related to the research, as
mentioned earlier, were created and given a date. Also, the timelines included in
the research protocol helped the researcher in monitoring the progress made
with regard to the research milestones which included amongst other timing for
data collection and analysis, scheduling of the trip to Nigeria and meeting with
research respondents, the process of setting up interviews, doing follow up and
more. Moreover, an excel spreadsheet including the coded name of the research
participants, time, location and duration of the interview was also created for
each case study; (c) the maintenance of a chain of evidence that can allow a
12
third party to trace the steps involved in the research process and also to improve
the reliability of the study (Yin, 2009). Thus, all relevant evident were kept and
used during the data analysis. This helped in enhancing the overall quality of the
study.
The data were collected from multiple sources, including both primary and
secondary, and then analysed with no a priori propositions or hypotheses. In
particular, data generated from semi-structured interviews were digitally
recorded, transcribed, and then content analysed using a contact summary form
and a qualitative software analysis package called MAXQDA analysis.
As part of this analysis, recurring words and thoughts were grouped into themes.
These themes emerged from the data analysis were considered against those
found in the literature review and subsequently given one of the following
naming: “consistent with the literature-no adaptation is required”; “Consistent with
the literature- adaption is required”, “Inconsistent” or “New”. This approach was
first applied to each of the cases individually; and then, a cross-case analysis
was performed.
Then, Healy and Perry (2000) and Yin (2009) quality criteria are combined with
Riege and Nair (1997) techniques for evaluating validity and reliability along the
following six dimensions of ontological appropriateness, epistemology, construct
validity, internal validity, external validity (credibility) and reliability.
Lastly, the research results are presented as well as research propositions and a
conceptual framework for successful CRM implementation in emerging markets
developed for potential further testing in future research.
13
1.6 Thesis Structure and Map
As depicted in figure 1-1 below, this study is organized in eight chapters. The
symbiotic interplay of the content of these chapters helps support the study
purpose and also to address the research questions.
Chapter 1 introduces the research topic by focusing on 1.1) the context of the
study, 1.2) the problem statement, 1.3) the purpose statement and key research
questions, 1.4) the knowledge gap and 1.5) a brief research methodology. It
culminates with 1.6) the thesis structure.
Chapter 2 examines the theoretical lenses through which this research has been
approached. It incorporates a critical assessment of three theories; namely 2.1)
the contingency theory, 2.2) the institutional theory, and 2.3) the culture theory
which focuses on Hofstede’s fifth value dimensions of national culture. The
underlying principle of each theory is discussed and the linkage with CRM is
considered. The last section of this chapter, 2.4) synthesises these three
theoretical lenses, contrasts them with one another and highlights some key
insights. Throughout this chapter, these theories are deeply evaluated to
ascertain the importance of their contribution in relation to the topic being
researched.
Chapter 3 assesses previously published studies in the context of Customer

Relationship Management (CRM) in emerging markets. Firstly, 3.1) it defines key
CRM concepts, and then highlights 3.2) the antecedents to effective CRM
implementation from a developed and an emerging market’s perspectives.
Subsequent chapter sub-sections are concerned with 3.3) the benefits and
challenges of CRM; and lastly with, 3.4) an analysis of the Nigerian and South
African markets. The state of the banking and mobile telecommunications
industries is also presented.
14
Chapter 4 covers six sections, including: 4.1) an introduction, 4.2) the research
design and paradigm, 4.3) the population and sample, 4.4) the data collection
method, 4.5) the methods of data analysis and interpretation and 4.6) the criteria
for rigorous qualitative data analysis.
In chapter 5 and 6, the within case analyses are performed and results from
these analyses are presented. These results are supported by verbatim quotes
from research participants.
Chapter 7 addresses the cross-case analyses across these three factors:

Organisational, Institutional and Customer. Moreover, industries, companies,
countries and even roles performed by each of the identified research
participants are cross-analysed. The results of these analyses are depicted in
graphs.
As the last chapter of this research report, Chapter 8 outlines the research
implications, limitations and areas for future research. Prior to doing this, it
presents some concluding remarks on the study that has been undertaken.
Furthermore, recommendations are made on the contingency factors that can
impede on or enhance CRM implementation success. Based on these inductive
analyses, a theoretical framework and a model for successful CRM
implementation in emerging markets are proposed.
15
Figure 1-1: Thesis structure and map
In conclusion, this research identified a void in the CRM literature which relates to
the contingency factors for CRM implementation in emerging markets and also
the lack of adaptation of CRM strategies to these markets. It proposed three
theoretical lenses through which the study would be approached; namely the
contingency, institutional and Hofstede’s fifth dimension of national culture (short-
term vs. long term orientation) theories. Understanding these various theories
and how they can be applied to this study forms the basis of Chapter 2.
16
CHAPTER 2: THEORETICAL FRAMEWORK
This chapter examines the theoretical lenses through which this research has
been approached. It incorporates a critical assessment of three theories; namely
(1) the contingency theory, (2) the institutional theory, and (3) Hofstede’s fifth
national dimensions. The underlying principle of each theory is discussed and the
linkage with CRM is considered. In addition to this, throughout this chapter, the
above-mentioned theories are deeply analysed to ascertain the importance of
their contribution in relation to the topic being researched.
Figure 2-1: The theoretical framework
17
2.1 Contingency Theory
2.1.1 Overview and definition of the contingency theory
Although the wide recognition of the contingency theory as an important

management concept may have started as early as 1960s thanks to the work
published by Burns and Stalker (1961), Thompson (1967), and Lawrence and
Lorsch (1967), it is undeniable that, over the past 3 decades, the main
contributors to this theory have been from such scholars as Scott (2005),
Shenhar (2001), Ginsberg and Venkatraman (1985) and Galbraith (1973). These
scholars argue that organizational performance is dependent on the goodness of
fit between structural and environment variables.
These contingency theorists recognize that due to the nature of the environment
in which organizations operate, there can not be one way of organizing and
managing businesses (Tosi & Slocum, 1984). They assert that contingency
factors embedded in the external environment impact on the structure and
management of the company and as a result, they provide organizations with
multiple avenues to develop and implement appropriate strategies that respond
to these environmental challenges. Smith and Lewis (2011, p. 381) concur when
they posit that the contingency theory offers “a response to tensions” faced by
organizations. They suggest that this theory allows for a choice amongst
competing demands and they also note that the alignment between internal
factors and the external environments increases the organization effectiveness.
In support of this theory, Galbraith (1973) commented that marketing
organizations cannot be organized in a single way. According to him, each way of
organizing a marketing organization is not equally effective. These thoughts were
echoed and extended by Scott (2005, p. 89) who found that contingency theory is
“guided by the general orienting hypothesis that organizations whose internal
features best match the demands of their environments will achieve the best
adaptation…the best way to organize depends on the nature of the environment
to which the organization relates”. Similarly, Donaldson (2001, p. 2) notes that
18
“contingency theory incorporates the concept of fits that affect performance which
in turn impels adaptive organizational change”. He further explicates that the
contingency approach posits that the effect of one variable on another depends
on a third variable. Thus, there is a trivariate relationship between structure,
contingency and performance; and as a result of this, where the structural
variable is at the level that fits the level of the contingency, a superior
performance outcome can be achieved and conversely.
2.1.2 Application of the contingency theory to the broad management

context
In a meta-analysis of the development of contingency thinking of articles

published in the Journal of Management between 2008 and 2009, Boyd, Takacs
Haynes, Hitt, Bergh, and Ketchen (2012) distinguish between contingency
hypotheses and contingency theory. Moreover, there is evidence in the extant
literature that suggests that various concepts of contingency theory have
emerged. These concepts have included the notions of general contingency
theory (GCT) spearheaded by (Luthans & Stewart, 1978), structural contingency
theory (Drazin & Van de Ven, 1985), and strategic contingency theory
(Donaldson, 1987; L. Kim & Lim, 1988; Zeffane, 1989). According to Luthans and
Stewart (1978), the general contingency theory was introduced in April 1977
whilst the strategic contingency theory is still in its infancy (Jangwoo & Miller,
1996).
All of the above contingency theories are based on the premise that there needs
to be a fit between organisational factors and the environment in which the
organization operate to allow for effective strategy implementation that leads to
high company performance.
As much as there has been an interest from academicians in the contingency

theory as noted above, the available studies that have drawn from this theory
have covered a wide array of management subjects including but not limited to
project management (Söderlund, 2004; Souder, Sherman, & Davies-Cooper,
19
1998), risk management (Barki, Rivard, & Talbot, 2001), organisational
performance (Tucker, 2010), organisational behaviour and change management
(Battilana & Casciaro, 2012), supply chain (Lee et al., 2010) and marketing
(Heiens & Pleshko, 2011; Ruekert, Walker Jr, & Roering, 1985).
Although the extant contingency theoretical views on the need for a fit between
internal and the external environmental factors are widely accepted, critical
issues still remain. For example, the classical theorists tend to differ with this
contingency view as they contend with a single way of running organizations
which is more often described as a “one size fits all” approach (Shenhar, 2001, p.
395). The next section of this chapter expands on the limitations of the
contingency theory.
2.1.3 Limitations of the contingency theory
Over the years, the contingency theory has been a source of many debates and
discussions in the academic literature. Although the main vantage points of this
theory have been recognized (Tosi & Slocum, 1984), there are criticisms that
have weakened the potential impact this theory could make in a specific field of
research.
The main problems associated with this theory were articulated by Schoonhoven
(1981),Tosi and Slocum (1984), and Boyd et al. (2012).
The seminal work of Schoonhoven (1981) has largely contributed to the

description of problems associated with the contingency theory. According to her,
there are five problems with the contingency theory which include: (a) Lack of
clarity: the substance of the theory is not clear enough and the statements made
by the contingency theorists are ambiguous; (b) contingency relations as
interactions: When contingency theorists assert that there is a relationship
between variables (dimensions of technology and structure, for example) which
predicts a third variable (organisational effectiveness), they are stating that an
interaction exists between the first two variables. Consequently, it must be clearly
stated that contingency arguments produce interactive propositions; (c) functional
20
forms of interaction: theoretical statements do not clearly define the types of
interactions intended; (d) the analytical model: relationships studied within the
contingency model are considered to be linear; (e) assumptions about
contingency relationships: this theory arguments that lower values of a dimension
of structure when coupled with lower values of technological (or environmental)
uncertainty, should produce effective organizations. An implication of this
argument is that effectiveness can be impaired because there is no congruence
between technology and structure.
Other scholars such as Tosi and Slocum (1984) have summarized the criticisms
of contingency theory into two salient points: lack of clarity of concepts and the
inadequately specification of the relationships between the concepts.
In addition to this, more recent studies bring to the fore the limitations of the
contingency theory. For example, Boyd et al. (2012, p. 280) assert that
“contingency as a theory came under criticism in the 1980s for a variety of
methodological and theoretical issues”. In their studies, they note the uncertainty
that is linked to contingency hypotheses and as a result of this they raise the
concern about the complexity of contingency hypotheses and how the lack of
precision could inhibit the development of new knowledge within the field of
management research.
From the preceding discussion, it may appear as though that the many difficulties
associated with the contingency theory may reduce its application to
management research. In an attempt to counteract this view, the relevance of the
contingency theory to this study is provided in the next section.
2.1.4 Relevance of the contingency theory to this study
The contingency theory is well documented in management research and as

previously mentioned, it has been applied to various management disciplines. In
this study of CRM implementation, it is applied as the overarching theory
because it supports the idea that many theories can be used to explain
phenomenon that are evolutionary. It integrates other theories such as the
21
institutional theory, and Hofstede’s five national dimensions of culture as well as
the Globe theory in a single research across four multiple case studies.
By applying the contingency theory in this study, issues associated with the use
of a single theory to a study is avoided. Instead, as different theoretical
perspectives are integrated into a single study, the research findings are enriched
and strengthened.
Moreover, one of the main focal point of this study is the identification of
contingency factors that can impede on or enhance CRM implementation in an
emerging market context. The South African and Nigerian markets in particular
provide the required context for testing the contingency theory. Also, by
contrasting CRM practices in high income, industrialized countries against
emerging markets, these practices may be found to vary in different settings,
which is the fundamental premise of the contingency theory.
Given the relative strength of some organizations, Jangwoo and Miller (1996)
posit that these organizations are able to thrive without effecting the fit between
performance and strategy. This approach supports the institutional view of
organizations whilst acknowledging the peculiarities of cultures. These two
conceptual lenses are further examined in the subsequent sections.
2.2 Institutional Theory
2.2.1 Overview and definition of the institutional theory
It has been well documented in the literature that an organization’s effectiveness

is linked to the degree of impact its environment or social context has on its
strategy (Caprar & Neville, 2012; Dacin, 1997; Grewal & Dharwadkar, 2002;
Robert E. Hoskisson, Lorraine Eden, Chung Ming Lau, & Mike Wright, 2000; Luk
et al., 2008; Rosenblatt, 2011). To manage this impact better, organizations
adopt business practices that may stem from various external pressures exerted
on them by such market players as the national or local government,
competitions, the community or even the media. This adoption of management
22
practices influenced by institutional pressures forms the basis of the institutional
theory.
Institutional theory can be defined as a theoretical lens that is used to study the
adoption and diffusion of organizational forms and practices. It is based on the
principle that organizations are under social influence and pressure to adopt
practices which are viewed as being appropriate for the situation (Björkman, Fey,
& Hyeon Jeong, 2007). According to Lincoln (1995, p. 114), the institutional
theory can be viewed as “the tendency for social structures and processes to
acquire meaning and stability in their own right rather than as instrumental tools
for the achievement of specialized ends.”
As a branch of organizational theory, institutional theory has been led by such

scholars as (DiMaggio & Powell, 1983; Scott, 2001; Tolbert & Zucker, 1996).
They have sought to explain organizational performance on the ground of
environmental factors such as regulations, societal norms, competitive pressures
and industry factors.
Institutional theorists such as DiMaggio and Powell (1983) posit that coercive,
normative and mimetic isomorphic motives are underlying reasons for a
company’s adoption of a business practice. They define coercive isomorphic
motives as those motives that are based on market legitimacy. Typically in this
situation, companies that want to reach legitimacy will tend to behave like their
counterparts without even ascertaining if the behavior displayed is congruent with
their vision or culture. Mimetic isomorphism tends to take place when there are
market changes. This ambiguity in the market forces companies to mimic the
behavior of other industry players being viewed by them as successful.
Normative isomorphic motives relate to the diffusion of norms that are deemed
appropriate amongst members of a society.
In his review of four sociological concepts with an institutional focus, Scott

(1987, pp. 493-499) highlights:
23
“Institutionalisation as a process of instilling value. This concept was
spearheaded by Prof Philip Selznick. He views organizations as an adaptive
vehicle shaped in reactions to the characteristics and commitments of
participants as well as to influences and constraints from the external
environment.
Institutionalisation as a process of creating reality. This version of

institutional theory is based on the worked done by Peter Gerber in the
sociology of knowledge. Gerber and Luckmann explicate that institutionalization
involves three phases: externalization, objectivation and internalization.
Institutional systems as a class of elements as viewed by Meyer and

Rowan (1977). They argue that the prevalence of organizational forms
cannot just be attributed to relational networks but also to shared belief
systems.
Institutions as distinct societal spheres. This concept embraces the idea of

diversity as a belief system.”
Later on, Scott (2008) pointed out that institutions comprise many elements
operating at various levels and as such institutional scholars need to establish
what elements matter in each context and also how each element relate to one
another. In the same paper, he provides a summary of the trends he has
observed in the institutional analysis of organisations before reaching the
conclusion that perhaps the institutional theory has “reached the stage of young
adulthood” (Scott, 2008, p. 439).
Mahalingam and Levit (2007) believe that institutional theory is a useful concept
that provides clarity on how to address cross-national issues resulting from
cultural differences between nations.
24
2.2.2 Application of the institutional theory to the broad management
context
Over the past three decades, the growing literature on the importance of
institutional forces and how they shape up organisations have re-affirmed the
position of the institutional theory as a robust and solid theoretical lens (Dacin,
1997; Scott, 2008). This is partly supported by the wide application of the
institutional theory across various disciplines (Greenwood & Suddaby, 2006).
For example, Muthuri and Gilbert (2011) studied Corporation Social

Responsibility Institutionalisation in Kenya by examining the Kenyan institutional
environments of culture, regulations and social norms. They concluded in their
research that “for the institutionalisation of CSR in Kenya, attention must be paid
to conditions that stifle CSR uptake such as lack of government regulations, and
the government’s capacity and commitment to enforce regulation. The
establishment of functional CSR institutions and a vibrant civil society that
advance civil regulation ought to be encouraged.” (Muthuri & Gilbert, 2011, p.
467). Another example where an institutional perspective is considered is the
study conducted by (K. Meyer & Nguyen, 2005) on Foreign Direct Investment
strategies in the Vietnamese market. Similarly, in a study focusing on market
orientation in the subsidiaries of global companies using multiple informants,
Kirca et al. (2011) provide empirical evidence on the significance of institutional
factors in the context of market orientation for theory development and
management practice. Furthermore, in an in depth study of corporate venture
capital programs, Souitaris, Zerbinati, and Liu (2012) unravel how organizational
sub-units resolve competing institutional forces either through isomorphisms or
endoisomorphisms.
The institutional theory has also been applied to other fields such as corporate
governance (Chizema & Buck, 2006; Yang, Su, & Fam, 2012), institutional
economics (Boettke & Fink, 2011; Chang, 2011) and the casino and gambling
industry (Humphreys, 2010).
25
Despite the progress of the institutional theory, several gaps still remain. These
gaps will be discussed in the next section and they should be viewed as avenues
for future research.
2.2.3 Limitations of the institutional theory
The institutional theory suffers from a number of shortcomings. Suddaby (2010)

identifies two main problems associated with the institutional theory; namely a
lack of clarity and a lack of focus and coherence. He notes that elements of the
contingency and change theories were repackaged as neo-institutionalism.
Although the institutional theory can gain insights from these two theories, “it
must remain true to what defines it” (Suddaby, 2010, p. 15). Additional gaps in
the institutional theory are discussed by (Scott, 2008). He comments that
“although the founding works (of the institutional theory) were seminal in calling
attention to the reality and influence of the institutional environment on
organizations, their initial formulations overstated the unity, coherence and
independence of these frameworks” (Scott, 2008, p. 431). For example, during
the earlier stages of the development of the institutional theories, it was posited
that organizations are static and that they were operating in a standardized
environment. This limited view has now evolved and improvements to the
institutional theories have been suggested in the academic literature. Fogarty and
Dirsmith (2001, p. 248) assert that the institutional theory has not addressed the
issue of socialization as it supports “the organizational theory’s interpretation of
socialization processes as instrumental in supporting the actual performance of
organizational work”.
In addition to the above, the criticisms directed at the institutional theory have
rather focused on the need for expansion on key concepts such as power,
legitimacy or ideational elements of organisations (Suddaby, 2010).
26
2.2.4 Relevance of the institutional theory to this study
The relevance of the institutional theory to this study on CRM implementation in

the banking and mobile telephony of Nigeria and South Africa can be tackled
from three main aspects:
 the emerging market context of this study,

 the increased interest in research on CRM with an institutional perspective
and,
 the advantages associated with the institutional theory as a whole as
opposed to any other theoretical lenses.
A. The emerging market context of this study:
Research conducted in developing markets indicates that institutions are an

important component of the external environment that affects strategic directions
adopted by companies (Hitt et al., 2005; R.E. Hoskisson, L. Eden, C.M. Lau, & M.
Wright, 2000; Lyles, Saxton, & Watson, 2004). In this regard, companies
operating in transition, emerging markets must be cognizant of the degree of
influence that institutions have on their business successes or failures (Hitt et al.,
2005). K. Meyer and Nguyen (2005, p. 64) assert that “institutions are of pivotal
concern to businesses operating in emerging markets, especially when they are
still unfamiliar with the local environment”. R.E. Hoskisson et al. (2000) concur
when they comment that institutional perspectives can help generate new ideas
on emerging markets.
In light of these comments, it was natural for this research to consider the
institutional theory as one of the theoretical lens through which the investigation
on CRM in Africa could be undertaken. As mentioned below, there are also two
other important factors that have led to the choice of the institutional theory.
27
B. The increased interest in CRM research with an institutional
perspective
Despite the general tendency to have Resource-Based View (RBV) as the main
theoretical lens for CRM studies (Dong & Zhu, 2008; Gouthier & Schmid, 2003),
recently published research conducted by (Kirca et al., 2011) demonstrates that
the institutional theory is gaining support from the broader marketing community,
particularly with regard to justifying how foreign firms behave in host countries.
Moreover, similar empirical studies conducted by other marketing scholars have
identified institutional pressures as drivers of marketing practices adopted by
companies (Connelly, Ketchen, & Slater, 2011; Grewal, Comer, & Mehta, 2001;
Grewal & Dharwadkar, 2002). These studies suggest that companies operate in
a social context which exerts an influence on their behavior. Hillebrand et al.
(2011) point to a similar conclusion when they suggest that institutional
processes can be important in explaining the adoption of CRM practices.
Specifically, they assert that although rarely used in marketing, “institutional
theory can make a contribution to understanding variation in effectiveness of
marketing practices in firms” Hillebrand et al. (2011, p. 592). Their study focuses
on mimetic motives of CRM practices and reveals that social pressures are
predictors of isomorphisms across companies. Mimetic isomorphism occurs
when competitors are adopting management practices that are perceived to be
“best practice” and consequently places pressure on other firms to jump into the
bandwagon and to “normatively sanction” these practices.
C. The advantages associated with the institutional theory as a whole as

opposed to any other theoretical lenses
The institutional theory offers a paradigm on how organisations behave in their

institutional environments (Suddaby, 2010). Moreover, unlike other theories such
as the Service dominant logic that have generated extensive criticisms in the
literature (O'Shaughnessy & O'Shaughnessy, 2011; Pels, Möller, & Saren, 2009),
there appears, despite its few limitations, to be a generally accepted view that
28
institutional theory is relevant to explain organizational behaviours in their
institutional contexts. Lastly, the institutional theory has been around for a long
period and as early as “the end of the nineteen and beginning of the twentieth
centuries” (Scott, 2005). As a consequence of this, it is a robust theory which, if
applied to studies, will be less prone to generating uncertainty about its
contribution to the management literature.
2.3 Culture Theory: Hofstede’s Fifth Value Dimensions of National Culture
2.3.1 Overview and definition
Companies across industries, products and service lines are increasingly taking
into consideration culture when developing strategies (Bloch, 1995; Jinhong,
Song, & Stringfellow, 1998; McCracken, 1986). The rationale behind this is the
premise that consumers across different cultures, countries or regions have
different ways of viewing the world (Hitt et al., 2005; Jinhong et al., 1998). In the
Fast Moving Consumer Goods (FMCG) industry, a company such as L’ Oreal is
already generating a large percentage of its revenues by tapping into consumers
across new cultures (far away from their home country), and specially in
emerging or developing economies (Fayolle, Basso, & Legrain, 2008). L’ Oreal
has set up a research centre called the “L’Oreal Institute for Ethnic Hair and Skin
Research” with the aim to assist its decision-makers to adapt their products to
the needs of their consumer base across international locations. A product that
was developed on the basis of understanding cultural differences amongst
consumer groups is the L’ Oreal SoftSheen haircare range that caters to the
ethnic female’s needs. Likewise, McDonald’s menu in India has been adapted to
make it relevant to the taste of Indian consumers. This adaptation to the culture is
also visible in the services industries. For instance, today, most banks offer
Islamic banking products for their Muslim communities.
Congruent with this practical evolution of culture adaptation to the environment in

which companies operate, the extant literature on culture is wide (Arnould &
29
Thompson, 2005; Hofstede & McCrae, 2004; Thomas, Haddon, Gilligan,
Heinzmann, & de Gournay, 2005). For example, Hall and Hall (1995) studied
cultures and they suggest that cultures can affect the way in which a company
interacts with its communities. They compare cultures on a scale of high to low
context. A high context communication or message rests on the implicit codes
whilst a low context communication achieves the opposite. This can be better
explained by taking the examples of Asian cultures where information is readily
shared amongst members of the community. Such communities are collectivists
as they abide by the principle of “sharing” or “ubuntu” as referred to as in South
Africa.
The Cultural Context Theory (CCT) developed by Arnould and Thompson

(2005:868) is a “theoretical perspective that addresses the dynamic relationships
between consumer actions, the marketplace, and the cultural meanings”. CCT
tends to focus on the multiplicity of overlapping cultural groups within a larger
socio-cultural context.
In this study, one draws on Hofstede’s fifth dimension of national culture, namely
short-term versus long-term orientation to investigate the implementation of CRM
programmes in the mobile and banking telephony sectors of Nigeria and South
Africa.
Hofstede’s cultural framework was originally based on the data collected by IBM
between 1967 and 1973. Based on the analysis of that data, he concluded that
there are four values that distinguish one country from the other one; namely
Individualism vs. collectivism, masculinity vs. femininity, power distance, and
uncertainty avoidance and accomplishment.
The individualism vs. collectivism dimension takes into consideration how people
relate to one another in their cultures. In cultures dominated by individualism,
people tend to fend for themselves and their immediate relatives; and not for their
whole communities; whereas in collectivistic cultures, exchanges occurred
amongst members of the society who tend to look after one another.
30
Masculinity vs. femininity: This dimension defines culture along two values;
namely masculinity and femininity. According to Hofstede, feminine cultures are
characterised by fairness, social relationships and quality of life whereas in
masculine cultures, key values include achievement and ambitions.
Power distance “reflects the consequences of power inequality and authority

relations in society. It influences hierarchy and dependence relationships in the
family and organizational contexts” (Soares, Farhangmehr, & Shoham, 2007).
Uncertainty avoidance and accomplishment: Companies that operate in countries

with an uncertainty avoidance and accomplishment dimension tend to be risk
averse and resist innovation.
Later on, Hofstede conducted additional research across twenty three countries
which led to the expansion of its culture dimensions from four to five (Minkov &
Hofstede, 2012). The fifth dimension is short-term versus long-term orientation.. It
is also referred to as “confucian dynamism”. This dimension deals with time
orientation consisting of negative pole (which reflects a static, short-term oriented
mentality) and positive pole (reflecting a future oriented, dynamic mentality)
(Hofstede & Bond, 1988).
Hofstede asserts that companies that operate in countries with a long-term

orientation are more likely to be innovative than those operating in those
countries that are characterized by a short-term orientation. It can thus be
deduced that cultures with a long-term orientation are more agile, flexible and
adaptive to changes as opposed to short-term oriented cultures which tend to be
myopic. Bearden, Money, and Nevins (2006, p. 457) define LTO as “the cultural
value of viewing time holistically valuing both the past and the future rather than
deeming actions important only for their effects in the here and now or short term.
As such, individuals scoring high in LTO value planning, tradition, hard work for
future benefit and perserverance”.
Ryu and Moon (2009) assert that LTO cultures have become widely accepted as
an important factor when describing nations. In their studies, they investigate the
31
effects of LTO cultures on inter-organisational trust and conflict in a relationship
between manufacturers and suppliers. They conclude that LTO impacts
significantly on the relationship amongst channel members, with high LTO culture
positively affecting trust in relationships as well as suppressing the potential
conflicts amongst channel members. On the contrary, low LTO culture do not
generate trust between channel members. The result of this study implies that “
channel members in LTO cultures tend to anticipate benefits over the long-term,
thus they do not risk self-interest seeking behaviours on the part of their partners”
(Ryu & Moon, 2009, p. 7)
In a recent paper, Venaik, Zhu, and Brewer (2013) provide a critical analysis of
the LTO and the Future Orientation (FO) in the national culture models of
Hofstede and Globe. They conclude that LTO focuses on past (tradition) versus
future (thrift) aspect of societies whereas GLOBE FO practices capture the
present versus future (planning) practices of societies, and GLOBE FO values
reflect societal aspirations and preferences for planning.
In 2010, Hofstede added a sixth dimension to its national culture dimensions;

namely: Indulgence vs. restraint. “Indulgence stands for a society that allows
relatively free gratification of basic and natural human drives related to enjoying
life and having fun. Restraint stands for a society that suppresses gratification of
needs and regulates it by means of strict social norms”(Hofstede, 2010).
Hofstede (2010) reckons that the position of a country on these dimensions

enables the understanding of how the country operates, including its
management processes and culture. Culture is not an individual but rather a
collective attribute that is manifested in the behaviours of people (Hofstede &
McCrae, 2004).
32
2.3.2 Application of the Hofstede’s theory to the broad management context
Hofstede’s culture theory has been applied to a broad range of management

issues; including but not limited to Human Resources (Aycan, 2005; Oke &
Dawson, 2012) ; Research and development and product design (Jinhong et al.,
1998) , performance management (Otley, 1999), and technology and information
systems (Ford, Connelly, & Meister, 2003; Kedia & Bhagat, 1988). In addition to
this, the seminal study conducted by van Everdingen and Waarts (2003)
investigates the effects of Hofstede’s five national dimension of cultures on
country adoption rates. Everdingen and Waarts focus on the application of these
value dimensions to innovation within the business to business environments,
across multiple countries. They conclude that national cultures, with the
exception of individualism affect enterprise resource planning adoption rates.
In the same vein, Soares et al. (2007) applied Hofstede’s culture theory to the
research they conducted on international marketing. In their studies, they present
a variety of ways to conceptualising the culture constructs identified by Hofstede.
They suggest a “multimeasure approach to assess culture using regional
affiliation, indirect values and direct value inference” (Soares et al., 2007, p. 282).
Hofstede’s work was not just limited to the management environment, it was also
applied across diverse cultures and countries such as Croatia (Laznjak, 2011) or
Jordan (Alkailani, Azzam, & Athamneh, 2012), just to name a few.
In this review of the literature on Hofstede’s culture theory, it was found that most
studies focus on applying at least four of the six value dimensions that were
identified by Hofstede. A few studies that focused on the fifth dimensions
included (Bearden et al., 2006), (Ryu & Kim, 2010) and (Hassan, Shiu, & Walsh,
2011). Fang (2003) describes the limitations of this fifth dimension of short-term
vs. long-term orientation which represents the focus of the next section.
33
2.3.3 Limitations of Hofstede’s theory
Whilst Hofstede’s value dimensions of culture has received some support from
the academic community; this theory has also been criticised by other scholars
(Fang, 2003). In this section, the focus will be on the limitations of the fifth value
dimension; namely the short term vs. long term dimension also known as the
Confucian dynamism.
Basing his arguments on the oriental cultures of Yin and Yang, “the Chinese
philosophical of dualism and paradox in the manifest world”, (Fang, 2003, p. 355)
argues that Hofstede’s fifth value dimension of national cultures is inherently
flawed. According to Fang, everything one does has a yin and yang; and
consequently, the Confucian values cannot be exempted from this philosophy.
He sees the idea of a short-term and long-term orientation not as opposite from
each other; but rather as two extremes of a continuum. Moreover, Fang finds the
concept of Confucian dynamism confusing and difficult to be registered in both
the Western and Chinese minds. This defeats the rationale behind Hofstede’s
fifth dimension which is believed to be his oriental contribution to the value
dimensions of national culture. Another limitation of this fifth value dimension is
the methodology that was used. Unlike his first four dimensions that followed a
supposedly rigorous methodology using a wide range of samples across multiple
countries to arrive at robust results, it is believed that the results of the fifth
dimension did not follow the same approach; thereby leading Fang (2003, p. 362)
to conclude that “ the model is not based on logic”.
In their assessment of the long-term orientation value, scholars have noted that
there have been concerns raised in the extant literature about this fifth dimension
related specifically to the psychometric properties of Hofstede’s scales as well as
the issues of applying aggregate level measures to the individual level (Bearden
et al., 2006, p. 456; Hassan et al., 2011).
With these limitations that have been highlighted, one needs to define the unique
relevance of Hofstede’s fifth value dimension of national culture to this study.
34
2.3.4 Relevance of Hofstede’s fifth value dimension to this study
Hofstede’s culture theory and specially the fifth dimension which focuses on the
short-term versus long-term orientation of countries are relevant to this study.
This relevance stems from the fact that ascertaining the type of orientation
adopted by each country under study will undoubtedly, according to Hofstede,
affect the orientation of the company. In other words, a company that operates in
long-term orientated country will tend to be more innovative, take risk and focus
on long-term instead of short-term objectives.
In this study, although South Africa and Nigeria are both located in Africa, each
country has its peculiarities that need to be understood by the marketer. Based
on the current literature, it may appear that South Africa is long-term oriented as
opposed to Nigeria that appears to be short-term driven. This is illustrated in
Table 2-1 that exhibits the long-term orientation (LTO) index and factor scores of
23 countries and regions. According to this table, Nigeria is classified 22 nd out of
23 countries with a LTO score of 16 against that of 118 of China which is ranked
number one. This study tends to indicate that Nigeria is a short-term orientated
country which leads to the conclusion that companies that operate in Nigeria will
not be innovative or will have a short-term approach to solutions they bring to
problems they are faced with. Consequently, these companies have a static,
short-term oriented culture. With regard to South Africa, although it does not
appear on this table, its position may be inferred from those of other BRICS
countries which are represented on the table; namely Brazil, India and China.
These countries achieved an LTO score of 65, 61, and 118; and they were
ranked sixth, seventh and first (out of the 23 countries) respectively. They are on
the positive pole thereby indicating their dynamism and future, long-term driven
culture.
35
Table 2-1: LTO index and factor scores of 23 countries and regions
Score rank Countries or regions Factor scores LTO score
1 China - 118
2 Hong-Kong .91 96
3 Taiwan .74 87
4 Japan .59 80
5 South Korea .49 75
6 Brazil .30 65
7 India .31 61
8 Thailand .11 56
9 Singapore -.04 48
10 Netherlands -.13 44
11 Bangladesh -.20 40
12 Sweden -.24 33
13 Poland -.36 32
14 Germany -.38 31
15 Australia -.38 31
16 New Zealand -.39 30
17 USA -.42 29
18 Great Britain -.50 25
19 Zimbabwe -.50 25
20 Canada -.53 23
21 Philippines -.61 19
22 Nigeria -.67 16
23 Pakistan -1.00 00
Source: (Fang, 2003)
36
In addition to the above, the fifth dimension is relevant to this study because of
the fact that one cannot ignore the impact that culture has on marketing and
specially CRM implementation in emerging markets. There have not been any
prior studies in the CRM literature that have specially focused on the short-term
vs. long-term orientation dimension of Hofstede’s national value dimensions to
address a CRM problem. This study provides an avenue for this LTO theory to be
validated in the CRM and African contexts.
The next chapter explicates prior CRM studies available in the current literature.
Moreover, it provides an evaluation of the evolution, current state and trends of
mobile and banking industries in South Africa and Nigeria.
37
CHAPTER 3: LITERATURE REVIEW
This chapter assesses previously published studies in the context of Customer

Relationship Management (CRM) in emerging markets. Firstly, (3.1) it defines
key CRM concepts, and then highlights (3.2) the antecedents to effective CRM
implementation from a developed and an emerging market’s perspectives.
Subsequent chapter sub-sections are concerned with (3.3) the benefits, success
measures and challenges of CRM; and lastly with, (3.4) a market analysis.
3.1 CRM Concepts Definition
3.1.1 What is a relationship?
In recent years, globalization has had a profound impact on the economic

exchange of goods and services between buyers and sellers (Constantinos,
Christos, & Amalia, 2003; Ramaseshan, Bejou, Jain, Mason, & Pancras, 2006;
Yip, 1996). Today, it is undoubtedly one of the challenges that organizations
have to face as it has become difficult to ignore its potential impact on
businesses (Burgess & Steenkamp, 2006).
The effects of globalization are well documented in the literature and include:
Rising customers’ expectations, an emphasis on superb service quality by both
sellers and buyers, a proliferation of new technology, faster communication
channels, lower communication costs, and closer socio-economic interaction
between nations (Galbraith, 2005; Sheth & Parvatiyar, 1995). These market
dynamics have propelled a shift of power from the seller to the buyer and have
placed companies under pressure to meet and exceed their customers’ needs
(Mack, Mayo, & Khare, 2005; Peppard, 2000). In an attempt to capture their
target markets’ attention and improve diminishing margins, high performance
driven organizations have explored multiple avenues to respond to these market
changes. The old model of “design-build-sell” (a product-oriented view) has been
replaced by that of “sell-build-redesign” (a customer-oriented view). The
38
traditional process of mass marketing has been challenged by the “one-to-one
marketing” approach which has, at its core, the need for relationship building with
customers (Rygielski, Yen, & Wang, 2002, p. 485). Consequently, this concept of
relationship building which is based on relational exchanges between the firm
and its customers has progressively become important in the lexicon of both
Academics and Practitioners. In fact, the word “relationship” is used across such
disciplines as psychology (Judge & Bono, 2001; Schein, 1970), marketing (R.
Morgan & Hunt, 1994) and political science (Thorelli, 1986) which may, to some
extent, explicate its diverse meanings.
In the context of the marketing and management fields, Buttle (2009) suggests
that a relationship must be viewed from a dyadic perspective as it is a series of
interactive engagements with a minimum of two people over a period of time.
This position is supported by (R. Morgan & Hunt, 1994) who do not view
relationship as a once-off transaction but rather as a collaborative effort where
parties that interact get to learn from each other and thereby building sustainable
relationships with each other.
Dwyer, Schurr, and Oh (1987) distinguish five stages of the relationship

development process namely; awareness, exploration, expansion, commitment
and dissolution. Figure 3-1 demonstrates these relationships phases and
explains their characteristics.
39
Figure 3-1: The relationship development process
RELATIONSHIP
PHASE
PHASE
CHARACTERISTICS
Enabling Subprocesses for Deepening

1. Awareness Dependence 1. No interaction
Attraction Communication Power &

2. Exploration & Bargaining Justice 2. Gradual increase in
inter-dependence
Norm
Expectations
3. Expansion Development 3. Mutual satisfaction
Development
with roles plus
additional gratification's
are sought.
Shared values and

governance structures 4. Contractual
4. Commitment support joint investment mechanisms and/or
in relation shared value systems
ensure sustained
0 interdependence.
0
Seller’s dependence Buyer’s dependence
on buyer on seller
Source: (Dwyer et al., 1987)
According to Dwyer et al. (1987), the Awareness stage is the first step in the
relationship development process between two parties. During this stage, each
party recognises that the other party is a potential partner. In the second stage of
this process, called Exploration, the parties assess each other by taking into
consideration such factors as “obligations, benefits and burdens”. In phase three,
also referred to as Expansion, the goal congruence and cooperation between
parties generate more intimate interactions. Phases 4 and 5 are concerned with
commitment and Dissolution, respectively. Commitment occurs when both parties
are satisfied with their relationships and they want to continue with the
relationship whilst Dissolution takes place when a party withdraws from the
relationship.
Another relationship development process is that of Clark Moustakas. His

primary processes of relationship development incorporate three phases: Being
in, Being for, and Being with (Patton, 2002).
40
During the being in phase, individuals involved in the relationship immerse
themselves in one another world with the intent to understand their experiences
and perception of the world. Being for requires an active participation into the
other party’s life by taking a position on issues affecting the person and also by
becoming his or her advocate. Being with is all about bringing “one’s own
knowledge and experience into the relationship”(Patton, 2002, p. 8).
Nguyen and Mutum (2012) found that the firm creates long lasting relationships
and successful CRM implementation when there is an effective blend of the
following four factors; namely (a) trust and commitment; (b) satisfaction; (c)
symmetry and dependence; and (d) fairness.
In summary, research on the relationship concept has focused on the dyadic

nature of the relationship between two parties by emphasizing that a relationship
exists between parties when it is not transactional, one-sided; but rather
interactive and collaborative. Explicitly, there must be a provider or seller and a
buyer for a relationship to exist (Mendoza et al., 2007). Moreover, it is
acknowledged in the literature that individuals have to go through a relationship
development process to totally commit to the other party. The elements of trust,
commitment and satisfaction appear to be prerequisites for successful
relationship amongst parties involved in a relationship. Therefore, building
relationships with customers require that organizations embed these elements in
the daily interactions with them and across all the customer touch points.
41
3.1.2 CRM defined
The concept of CRM was popularized in 1993 when Tom Siebel, the Founder of
Siebel Systems Inc., launched a software application that could assist companies
to automate their marketing activities (Buttle, 2004). Today, despite its growing
recognition amongst practitioners and academics, the meaning of CRM still
remains contested (Boulding, Staelin, Ehret, & Johnston, 2005; Payne & Frow,
2006). The available literature on CRM presents numerous definitions of what
CRM is, thereby leading (Winer, 2001, p. 91) to comment that “CRM means
different things to different people”.
Viewed from the standpoint of information technology (IT) specialists and

software vendors, CRM refers to collecting marketing data and leveraging
communication technologies to maximize customer’s lifetime value to an
organization (Boulding et al., 2005; Kumar & Reinartz, 2006; Reinartz et al.,
2004). Payne and Frow (2006) affirm that CRM has its roots in relationship
marketing, which supports a multi-stakeholder management approach. In a more
recent view of CRM, Frow and Payne (2009, p. 10) define CRM as “the strategic
management of relationships with customers, involving appropriate use of
technology”.
Greenberg (2010) defines CRM as a set of philosophies, strategies, systems and

technologies that would effectively and efficiently manage the transactions of
customers with companies and the subsequent relationships with those
customers.
From these definitions, it appears that IT is just an enabler for companies in their
quest to build and sustain profitable relationships with customers. In addition,
CRM is portrayed as a business philosophy that is engrained in a company’s
culture or way of doing business. As a result, its CRM strategy development and
implementation approach must be aligned with the overall business strategy.
42
Wahlberg, Strandberg, Sundberg, and Sandberg (2009) sought to assess what
has been published in what is perceived to be the four dominant approaches to
CRM namely; (a) Strategic, (b) Analytical, (c) Operational and (d) Collaborative.
They conclude their research by highlighting that operational and collaborative
CRM need to be given further attention in the future. A detailed description of
these CRM approaches is given below:
1. Strategic CRM refers to how organizations apply CRM to realize their

business goals (Bull, 2003; Goodhue, Wixom, & Watson, 2002). According to
(Mack et al., 2005), in a strategic CRM concept there is an integrated customer
approach to customer acquisition and retention which impacts on customer
loyalty, improves target marketing and generates quality customer information.
The strategic CRM process is spearheaded by the top leadership members of the
organization. These leaders represent cross-functional business areas including,
sales and marketing, logistics, production, finance, human capital development
and research and development, just to name a few (Lambert, 2010).
2. Analytical CRM is concerned with the analysis of customer data with the aim
to support customer management strategies within a company (E.W.T. Ngai, Xiu,
& Chau, 2009). This includes the underlying data warehouse architecture,
customer profiling and segmentation, systems, reporting, and analysis.
Wahlberg et al. (2009) found that an important focus area of analytical CRM is
the extensive analysis of customer data to improve marketing efficiency. Mishra
and Mishra (2009) advocate that analytical CRM leverages Operational CRM to
create customer insights using statistical methods.
With the right analytical tool and infrastructure, companies are not just able to
have a 360-degree view of the customer; but they can also understand customer
43
behavior at the most granular level. Business decisions based on analytics
enable the company to understand customers across a large number of variables
such as value, usage rate, profitability, attrition, churn rate, product usage,
location and dormancy.
3. Operational CRM is referred to as “Transactional CRM” (Chamelta, 2006)

and as “the automation of business processes” (E.W.T. Ngai et al., 2009, p.
2397). According to Mishra and Mishra (2009) operational CRM supports front
office processes. Chamelta (2006) and J. Chan (2005) support the view that
Operational CRM is comprised of the technology and business processes that
facilitate customer interactions. As part of these interactions, the company can
obtain customer insights that are generated from operations through all customer
touch points such as contact centre, website, fax, sales people and many more.
The real impact on the business only occurs when the collected data is converted
into useful information for customer acquisition and retention strategies.
Operational CRM has become critical as it enables staff to better service
customers.
The integration of operational and analytical CRM provides a 360 degree view of
the customer across all channels thereby enabling the company to capitalize on
the relevant customer opportunities. Such opportunities could include cross and
up-selling of products, reactivation of dormant accounts or reduction of the churn
rate. Figure 3-2 illustrates the feedback loop between Operational and Analytical
CRM.
44
Figure 3-2: Feedback loop between Operational and Analytical CRM
Operational
data
Operational CRM Analytical CRM
(OCRM) (ACRM)
Customer
intelligence
Source: (J. Chan, 2005)
According to J. Chan (2005, p. 35), “Analytic CRM creates customer intelligence

that enhances future customer interactions whereas operational CRM captures
critical data required for CRM analytic purposes.
4. Collaborative CRM is still a blurred concept (Reinhold & Alt, 2009). It has
been defined as the exchange that occur amongst such parties as suppliers,
clients, consumers and manufacturers through the usage customer channels with
the view to achieve a common goal: To enhance customer relationships
(Reinhold & Alt, 2009). Although customers may be external targets, they also
play a participative role in the collaborative CRM process.
45
3.1.3 CRM related concepts
From the review of the extant literature on CRM, there are such concepts as
Relationship Marketing (C. Grönroos, 1997; Gummesson, 2004), Database
Marketing (Kumar & Reinartz, 2006), Services Marketing (Vargo & Lusch, 2008),
Customer Management (Payne, Storbacka, & Frow, 2008), and Total Customer
Relationship Management (Su, Tsai and Hsu, 2010), just to name a few, that
have emerged. The common denominator amongst these concepts is the focus
on customers. Table 3-1 provides an overview and definition of CRM related
concepts that were found the literature.
Although these concepts focus on the customer, there is an increased usage of

the customer experience concept by both academicians and practitioners. The
literature does not provide a clear comparison between the concept of customer
experience management and that of customer relationship management
However, it can be deduced from the literature that the concept of customer
experience is mainly used in relation to service quality, customer service and a
lasting and fulfilling emotional experience for customers (Berry, Carbone, &
Haeckel, 2002; Mascarenhas, Kesavan, & Bernacchi, 2006); whilst CRM is
viewed as a more strategic approach to customer management (Payne & Frow,
2005). In other words, it is implied that CRM excludes the operational side which
deals with customer experience. This is a misperception that needs to be
discarded as CRM does not just happen in the back-end but also incorporate the
front-end engagement with the customer to assist the company to achieve its
CRM objectives (Buttle, 2009). These objectives are tightly linked with customer
loyalty, improved service quality and reduced complaints.
46
Table 3-1: An Overview of CRM-related Concepts
No. CRM related concepts Sources Definition
1 Customer Experience Johnston and Kong, 2011 It involves the customer’s cognitive, affective,
Management emotional, physical and rational responses to a
Palmer, 2010
company and its products.
Pine and Gilmore, 1998
2 Customer Knowledge Akhavan et al., 2008 Also known as “Knowledge enabled CRM”;
Management CKM is an area of management where various
Knowledge Management instruments and
procedures are applied to support the
exchange of customer knowledge within an
organization and between an organization and
its customers.
3 Customer Management Payne and Frow, 2009 Implementation and tactical management of
customer interactions.
4 Database Marketing Kumar and Reinartz, 2006 It involves the gathering of relevant customer
data and devising appropriate campaign that
can appeal to the targeted groups. If done
effectively, the company can maximize its
profits and strengthen its relationship with its
customers.
5 Global Customer Ramasehsan, Bejou, Jain, The strategic application of the processes and
Relationship Mason and Pancras, 2006 practices of CRM by firms operating in multiple
Management Ramaseshan Kumar, Sunder countries, or by firms serving customers who
and Ramaseshan, 2011 span multiple countries.
6 One-to-one Marketing Rogers and Peppers, 1999 One-to-one marketing is a four-step process of
identifying, differentiating, Interacting and
Communicating with customers.
7 Relationship Marketing Gronroos, 1997; Gummesson, Interaction of networks with the view to develop
2004;Leick, 2007 relationships that meet the objectives of the
parties involved and that can be sustained over
their lifetime.
8 Services Marketing Gummesson, 2007 Services’ marketing is a sub-

discipline of marketing that
emphasizes that customer buys what
they perceive to be of value for them.
9 Total Customer Su et al., 2010 TCRM involves activities of customer related

Relationship processes, management responsibility,
Management (TCRM) resource management, product/ service
realization and measurement that improve the
effectiveness of marketing initiatives and aid
towards customer acquisition and retention.
48
3.2 Antecedents to Successful Customer Relationship Management
The antecedents to successful CRM refer to those CRM practices that must be in
place to ensure that the CRM goals of reduced customer complaints, increased
sales, reduced costs and increased customer loyalty, retention and acquisition
are met (Eid, 2007). These determinants are the driving forces behind CRM
success and organizational competitive advantage (Raman, Wittmann, &
Rauseo, 2006). They are attributes and variables with considerable effect on
organizational results (Buttle, 2009).
In an attempt to guide companies in their CRM journey, most of the studies on

CRM in recent years have proposed a set of critical success factors for CRM
implementation in organizations (Chen & Popovich, 2003; Zablah, Bellenger, &
Johnston, 2004). This increased focus on CRM effectiveness can also be viewed
as a response to a wide array of papers published in the academic and
professional literatures on the high failure rate of CRM programs estimated at
80% of the total CRM programs implemented (Bush, Moore, & Rocco, 2005).
Empirical evidence reveals that the basis for CRM success is “an integrated and
balanced approached between technology, people and processes” (Mendoza et
al., 2007, p. 914). Whilst one may support this increased focus on key
determinants of CRM success, scholars such as Burgess and Steenkamp (2006)
and (Kumar et al., 2011) claim that the existing literature on CRM has been
restricted to industrialized markets. They claim that the stark differences
between industrialized and developing markets should not lead to the
generalisability of findings from industrialized markets as these may not be
applicable to the developing market context. This view is echoed by (Sharma &
Iyer, 2007) who posit that considerations need to be given to the context in which
the company operates in order to devise successful CRM strategies. These
remarks have prompted more localized CRM research on emerging markets with
a stronger focus on China, India and the Middle East countries (Haridasan &
Venkatesh, 2011; Rouholamini & Venkatesh, 2011; Shengdong & Xue, 2011).
Industrialized and emerging market perspectives on CRM success of what is
available in the literature will now be presented. A synthesis of this analysis and
key insights drawn from this literature review will also be provided in the
subsequent sections
3.2.1 The high income, industrialized markets perspective
The discourse on CRM has made a tremendous contribution to the antecedents

of CRM success in industrialized markets. A review of a select number of papers
published between 2002 and 2012 on CRM in high income, western,
industrialized markets, reveals that there are fundamental CRM practices that
must be in place for an organization to achieve success. Although these factors
tend to vary from one scholar to the other, there are broad similarities in terms of
the identified CRM critical success factors. The following nine factors are
undeniably at the top of the list and include:
1. Shared vision: This refers to the business foresight of what CRM is in the
organization and how this vision is communicated to the entire member of its
constituencies, including partners and other external stakeholders.
2. Executive buy-in: The leadership team has to give its imprimatur for the CRM
implementation program and most importantly they have to support it and
champion in across the entire business.
3. Sound project management: It refers to the ability of an organization to
effectively manage its CRM programme from an end to end aspect within the
planned resources (people, financial and time) requirements.
4. Interdepartmental cooperation: It is about encouraging cooperation and
collaboration amongst the various departments of the organization. Through
collaborative efforts amongst the business units, the company can speedily and
efficiently deliver its customer promise and consequently achieve the planned
business goals.
50
5. Information systems/technology integration: It is the ability to integrate the
legacy systems with the newly implemented CRM systems in a way that allows
for a 360 degree view of the customer across all the identified customer touch
points. It also means moving away from a siloed approach by having a primary
single repository of customer data that is updated timely and shared across the
business.
6. Change management and training: Managing change is ranked quite high
because most organizations have to shift their paradigms which may mostly be
sales, process or product-driven to a customer-centric approach. To effect these
changes in the business, the training of employees is necessary. The training
becomes even more critical for customer-facing employees as they have to
project the right image of the organization and its new vision to customers. “In
general, change management activities empower, inform, and allow
organizational members to exert a significant degree of influence over the
innovation effort” (Zablah et al., 2004, p. 289).
7. Internal stakeholder management refers to the management of expectations of
all employees across different hierarchical levels of the organizations. It is
understood that if these employees are clearly communicated to and actively
participate in the CRM programme, this can yield positive results for the
customers, employees and the organization as a whole.
8. Business process re-engineering: According to scholars from the high income
industrialized markets, “the main processes to be optimized are those through
which the customer engages with the organization”(Mendoza et al., 2007, p.
915). They include sales, marketing and service processes. Other processes
could be industry related such as the banking processes or the mobile telephony
processes; and
9. CRM measures: These are measures that are qualitative and quantitative in
nature. They do provide the business with a view on how the CRM program is
being implemented.
51
Figure 3-3: CRM Critical Success Factors
Sources: Various sources from the CRM literature including (Eid, 2007; Foss et
al., 2008; Hsin Hsin, 2007; Stan Maklan, Knox, & Peppard, 2011; Mendoza et al.,
2007; E. W. T Ngai, 2005)
The above spider diagram shows that a shared vision and top management
support are the two most critical factors for success when implementing CRM in
a company. These two factors are directly followed by training and change
management. Business process re-engineering, CRM measures, technology
integration and interdepartmental cooperation are ranked on the same level.
Sound project management is surprisingly the lowest rank measure for CRM
success; but still an important metric.
A review of the critical success factors of CRM in industrialized markets by

authors is presented in table 3-2.
52
Table 3-2: Review of Critical CRM Success Factors in Industrialized Markets
Item Critical Success Factor Authors

No.
1 Shared vision Hsin Hsin (2007)
2 Executive buy-in
Becker, Greve and Albers (2009); Foss, Stone and
Ekinci, King and Burgess (2008); Eid, 2007; Mendoza,
Marius, Perez and Griman (2006); Bull (2003)
3 Sound project management King and Burgess (2008); Eid (2007)
4 Interdepartmental cooperation King and Burgess (2008); Mendoza, Marius, Perez and
Griman (2006); Ryals and Knox (2001)
5 Information systems/technology Foss, Stone and Ekinci (2008); Mendoza, Marius, Perez
integration and Griman, (2006); Eid (2007); Bull (2003);
6 Change management and training Eid ( 2007); Hsin Hsin (2007); Raman, Wittmann and
Rauseo (2006); Zablah , Bellenger and Johnston (2005);
Rigby, Reichheld & Schefter, (2002)
7 Internal stakeholder management Becker, Greve and Albers (2009); Bose (2002)
8 Business process re-engineering Eid (2007); Hsin Hsin (2007)
9 CRM measures Eid (2007); Bull (2003); Ryals and Knox (2001) ; Winer
(2001)
In summary, the literature on CRM in high income, industrialized countries has

mainly focused on organizational factors as determinants of CRM success.
Beyond the definition of what CRM is, the extant literature has widely covered the
topic of CRM successes and failures in that context. However, most of the
studies conducted in this context do not provide tangible solutions or a road map
to successful CRM implementation. There have been some attempts though by
such scholars as Labus and Stone (2010), Payne and Frow (2006) and Winer
(2001) to develop a framework that can be used by other practitioners. However,
the main limitations of these frameworks are their limited applicability to the
Western markets.
3.2.2 The emerging markets perspective
Studies examining the determinants of CRM success in emerging markets have

yielded mixed results as illustrated in the analysis below:
In their assessment of country effects on CRM success, Sharma and Iyer (2007)
contend that the success of CRM strategies in international markets depends on
the level of a country’s infrastructure development and its marketing institutional
development. Moreover, they assert that because of its costs and lack of tangible
results, “in countries where there is both low infrastructure development and low
marketing institutional development, it is suggested that CRM strategies not be
implemented at this time.”(Sharma & Iyer, 2007, p. 73).
Although their arguments may conceptually be sound, it is not evidence-based.

In addition, by suggesting that CRM should not be implemented in these
countries leads one to believe that Sharma and Iyer (2007) are tacitly advocating
that a sales or product focused strategies should be appropriate in such markets.
Moreover, another limitation of this approach is their restriction to the marketing
institutions and thus not incorporating other institutional forces such as
competitors’ activities, which have been proven in some other studies to
determine the CRM approach and success of companies (Kirca et al., 2011).
Shengdong and Xue (2011) look specifically at CRM effectiveness in the mobile
telephony sector of China. They suggest that in China, for CRM to be effective,
organizations should not give up unprofitable customers. Moreover, they note
that technology and intuition are drivers of CRM success in an emerging market
environment. More studies on CRM in emerging markets have been conducted in
India (Haridasan & Venkatesh, 2011), Iran (Rouholamini & Venkatesh, 2011),
Pakistan (Rahman & Azhar, 2008) and Saudi Arabia (Almotairi, 2010).
In their studies of CRM implementation in India, Haridasan and Venkatesh (2011)

focus on service quality. They assert that organizations that offer superior service
54
quality can build and maintain customer loyalty. Specifically, they investigated
how CRM could be effective by using two loyalty indices such as word of mouth
and cross and up-selling.
Kumar et al. (2011) and Ramaseshan et al. (2006) researched the global
diffusion of CRM. Ramaseshan et al. (2006, p. 196) define Global CRM (GCRM)
as “the strategic application of the processes and practices of CRM by firms
operating in multiple countries, or by firms serving customers who span multiple
countries, which incorporates relevant differences in business practices,
competition, regulatory characteristics, country characteristics, and consumer
characteristics to CRM strategies to maximize customer value across the global
customer portfolio of the firm”.
Kumar et al. (2011) propose a conceptual model that outlines the internal and
factors that drive the variation in the learning effects across regions. Specifically,
this conceptual model describes the progression in the adoption of GCRM
technology in such markets as Europe, North America and Asia-Pacific and also
reveals that “collectivistic cultures, which are widespread in Asia-Pacific, have
lower rate of innovation and higher rates of imitation than individualistic
cultures(such as North America and Europe)”(Kumar et al., 2011, p. 29). Further,
they assert that decision-makers of companies across the globe have found
cross-regional learning a key factor for effective CRM implementation in their
respective companies. They conclude by encouraging companies that serve
customers across multiple geographies “to reconcile the country-specific and
global requirements of GCRM” in order to best address the needs of their
customers as there is no “one size fits all” solution to GCRM”(Kumar et al., 2011).
Further studies beyond CRM in emerging markets but that concentrate on

business strategies that fit emerging markets have been undertaken by (Khanna
et al., 2005). They assert that CEOs in developed, industrialized markets can’t
assume that they can do business the same way in emerging markets as the
55
level of sophistication of the market infrastructure are different. Hence, adaptation
to the emerging market context is required. However they warn against the use of
composite indices such as the Growth Competitiveness Index ranking, Business
Competitive Index ranking, Governance indicators, Corruption Perception Index,
Composite Country Risk points and Weight in Emerging Markets index when
developing strategies in emerging markets. Instead, they propose that companies
should capitalize on “institutional voids” by applying their proposed five context
framework of socio-cultural systems, openness, product markets, labour markets
and capital markets. It is evident from this study that the institutional context of
emerging markets is critical in determining the success or failure of business
strategies.
From the above analysis, it can be concluded that the authors tend to refer to
their broad experience in the consulting environment without emphasizing how
and where their five context framework was tested and what results were
obtained. This leads one to assert that their study is not motivated on sound,
scientific, empirically based grounds; but rather on their consulting experience.
3.2.3 Synthesis and key insights
Despite the fact that there appears to be an increased number of research

papers on CRM in emerging markets, these papers have tended to apply
constructs from high income, industrialized markets without providing much
insights on the peculiarities and the contingency factors of CRM implementation
in their own context.
The above-mentioned studies demonstrate that implementation of CRM in

emerging markets has focused on people, process and technology, consistent
with what has been done in industrialized markets.
56
Kumar et al. (2011) and Ramaseshan et al. (2006) have started to identify both
internal and external factors to be considered by global companies with multiple
locations, whilst Sharma and Iyer (2007) have suggested that marketing
infrastructure and institutions affect CRM success.
The contingency factors that are specific to each of the markets they have
studied have not been highlighted. This is the gap that this research will be filling.
By identifying those contingency factors that can impede on or enhance the
success of CRM implementation in Nigeria and South Africa, this study intends to
make a significant contribution to this body of knowledge. Table 3-3 contrasts
emerging and developed markets views on CRM success factors.
57
Table 3-3: Contrasting Emerging and Developed Market Views on CRM Success Factors
High income, industrialized (Developed) Emerging markets

markets
Item Critical Success Authors Critical Success Authors Contrasting emerging and developed
No. Factor market views based on the extant CRM
Factor literature
1 Shared vision Hsin Hsin (2007) Service quality Haridasan and The papers reviewed on CRM in emerging
Venkatesh markets have tended to focus on
(2011) constructs applied in high income,
industrialized markets without providing
2 Executive buy-in much insight on the peculiarities and the
contingency factors of CRM
Becker, Greve and Knowledge Fan and Ku
implementation in their own context. Kumar
Albers (2009); Foss, sharing/collaboration (2010) et al. (2011) and Ramaseshan et al. (2006)
Stone and Ekinci, King have started to identify both internal and
and Burgess (2008); external factors to be considered by global
Eid, 2007; Mendoza, companies with multiple locations; whilst
Marius, Perez and Sharma and Iyer (2006) have suggested
Griman (2006); Bull that marketing infrastructure and
institutions affect CRM success.
(2003)
3 Sound project King and Burgess Company commitment Fan and Ku

management (2008); Eid (2007) (2010)
4 Interdepartmental King and Burgess Redesign of internal Fan and Ku

cooperation (2008); Mendoza, structure and external (2010)
Marius, Perez and relationships
Griman (2006); Ryals
and Knox (2001)
5 Information Foss, Stone and Technology integration Fan and Ku

systems/technology Ekinci (2008); (2010)
integration Mendoza, Marius,
Perez and Griman, Shengdong and
(2006); Eid (2007); Xue (2011)
Bull (2003);
6 Change management Eid ( 2007); Hsin Hsin Corporate culture Ramaseshan,

and training (2007); Raman, Bejou, Jain,
Wittmann and Rauseo Mason and
(2006); Zablah , Pancras (2006)
Bellenger and
Johnston (2005);
Rigby, DK., Reichheld,
E. & Schefter, P.,
(2002),
7 Internal stakeholder Becker, Greve and Marketing infrastructure Sharma and Iyer
management Albers (2009); Bose and marketing (2007)
(2002) institution
8 Business process re- Eid (2007) Service process fit Fan and Ku
engineering (2010)
9 CRM measures Eid (2007); Bull Government policies Ramaseshan,

(2003); Ryals and Bejou, Jain,
Knox (2001) ; Winer Mason and
(2001) Pancras (2006)
59
3.3 Benefits and Challenges of CRM Implementation
3.3.1 Introduction
Effective customer relationship management has become the central focus of

companies that want to be successful in the markets in which they operate
(Nguyen & Mutum, 2012; H. Wilson et al., 2002). Dibb and Meadows (2004, p.
112) believe that long term organizational success is “contingent upon customer
retention as well as customer acquisition”. Despite strong evidence on the
positive aspects of CRM, the available literature still provides mixed evidence on
its business value.
Understanding the benefits, measures of success and challenges of CRM

implementation is thus critical for the development and execution of a robust
CRM programme in an organization.
3.3.2 Benefits
Empirical studies conducted by such scholars as S. Maklan, Knox, and Ryals

(2005), (Rigby, Reichheld, & Dawson, 2003) and F. King and T. Burgess (2008)
have demonstrated that CRM can benefits organizations in many aspects. In the
same vein, Payne and Frow (2006) and Ryals and Knox (2001) have built a
business case for CRM implementation in organization. In their studies, they
have demonstrated that CRM can be a source of competitive advantage for
companies operating in today’s multipolar environment. A recent study by Kumar
and Reinartz (2012) suggests that with the shift of power from sellers to buyers,
companies can improve the life time value of their customers through a robust
CRM programme.
Richards and Jones (2008, p. 123) summarize the benefits of CRM as consisting
of seven core elements: “Improved ability to target profitable customers;
integrated offerings across channels; improved sales force efficiency and
effectiveness; individualized marketing messages; customised products and
services; improved customer service efficiency and effectiveness; and improved
pricing”. Their meta-analysis of CRM benefits as well as their value drivers can
be found in Appendix B.
In a review of the literature on the main advantages of CRM, Ko, Kim, Kim, and
Woo (2008, p. 66) list the following amongst key advantages: “increased profits,
more customer relationships, more repurchases, accurate customer information
collected, enhanced customer loyalty, improved efficiency of customer
management, effect of word of mouth, reduced cost of new customer acquisition,
greater ease in developing new products, increased sales by additional
purchases, reduced cost of direct marketing, increased brand loyalty and
increased customer LTV (lifetime value)”.
Rigby et al. (2003) and Reichold, Kolbe, and Brenner (2001) concur that there
are numerous benefits of CRM. For example, Reichold et al. (2001) claim that a
5% improvement in customer retention can enhance profit by between 45 and
95% across a variety of industries (Buttle, 2004). Table 3-4 illustrates the
divergent measures of CRM implementation success. It shows that there are a
variety of measures used by companies to evaluate the successful impact of their
CRM programmes. These measures can range from return on investment (ROI),
sales generated, total number of CRM projects implemented to conversion rates.
61
Table 3-4: The Divergent Measures of CRM Implementation Success
Success rate Measures Source Cited in

(percentage)
265% Return on CRM investment of 11 Lowe’s Home Stringfellow, Nie and
USD million Improvement case study Bowen (2004)
25% CRM implementation success rate CSO insights Foss, Stone and Ekinci
based on 1337 international international surveys of (2008)
companies that had implemented 1337
CRM systems for their sales force.
20% CRM implementation success rate Bush, Moore, and Rocco Ahearne, Rapp,
based on total CRM projects 2005 Marianoss and Ganesan
implemented (2012)
16.1% Total sales generated after Dickie’s survey of 1700 Shendong and Xue
implementing CRM companies (2011)
12% Conversion rates of customers Virgin Wines case study Stringfellow, Nie and
based on the percentage of Bowen (2004)
customer who visited the website
that resulted in sales after CRM
was implemented.
Source: Multiple sources
Despite the apparent benefits of CRM, companies are still encountering

challenges that dampen their CRM efforts and to some extent lead to high CRM
implementation failure rates.
3.3.3 Challenges
CRM implementation results in companies indicate that there are still enormous
challenges faced by companies when implementing their CRM programmes
embedded in the implementation of CRM (Bull, 2003). CRM is not cheap. It is
hard work and requires significant resources to ensure its success. Its high
potential rate of failure has led some business executives to associate the CRM
62
acronyms with “Can’t Recover Money” (Shea, Brown, White, Curran-Kelly, &
Griffin, 2006, p. 3). Due to is high failure rate of past CRM initiatives, many
industry observers and analysts are bearish on initiatives currently in progress
(Crockett, 2007).
When comparing costs against the revenues generated from their CRM
investments, most companies have had to conclude that their investments have
not yielded the dividends they had anticipated (Woodcock & Stone, 2003). This
is further evidenced by the research conducted by Foss et al. (2008) who noted
that a study conducted by Gartner, a global research company, indicates that
70% of CRM projects result in either losses or no bottom line improvement in
company performance.
As pointed out by Rigby, Reichheld, and Schefter (2002), the reasons for CRM
failure is that most executives do not understand what they are implementing,
they do not how much it costs and how long it will take the company to start
benefiting from its investments. They have subsequently described the four perils
of CRM as consisting of:
 Implementing CRM before a customer strategy

 Rolling out CRM before creating a customer-focused organization
 Assuming that CRM has to be technology intensive
 Trying to build relationships with disinterested customers can further
damage the company’s reputation
Rouholamini and Venkatesh (2011) distinguish seven key barriers to successful

CRM implementation including:
 Lack of skills
 Inadequate investment
 Poor data quality and quantity
 Failure to understand the business benefits
 Functional boundaries
 Lack of leadership and top management involvement
63
 Inadequate measurement of systems
An additional investigation by Ahearne et al. (2012) points out that CRM has
been shown to be unsuccessful due to the fact that the selling context in which
CRM is implemented is not considered by organizations.
A study conducted in Turkey by Mishra and Mishra (2009) for a multinational

specializing in the design, manufacturing and sales of control systems for various
applications, reveals that the CRM programme did not produce the anticipated
outcomes because it was neither embraced by the CEO nor the organization as a
whole. In fact, the program was spearheaded by the Chief Information officer for
whom customer centricity was all about the adoption of the CRM technology.
Piskar and Faganel (2009) highlight the reasons behind the failure of the
implementation of CRM in a pharmaceutical company in Slovenia. Some key
reasons for this failure include the lack of a strategy, the absence of an
automated environment (as the CRM programme was implemented using an
Excel spread sheet), the lack of employees training, the project’s sponsor and
owner was the area Director with no real impact on the overall business, the
planned CRM implementation was inappropriate as it was scheduled during a
period where most employees go on vacation, a heavy reliance on the supplier
who kept changing the functionality of the CRM systems. Table 3-5 illustrates
the divergent measures of CRM implementation failures.
64
Table 3-5: The Divergent Measures of CRM Implementation Failures
Failure rate
Measures Source Cited in
(percentage)
Dickie’s survey of 1700
83.1% Ineffective usage of CRM tool (Shengdong & Xue, 2011)
companies
CRM implementation failure rate
Bush, Moore, and Rocco
80% based on total CRM projects (Ahearne et al., 2012)
2005
implemented
The measure used is the total Giga survey conducted in
number of CRM projects 2001
(Bull, 2003)
70% (or more) implemented. It is estimated that at Pitt et al (1995); Ewusi-
(H. Wilson et al., 2002)
least 70% of projects implemented Mensah and Przasnyski
will fail (1991)
It is estimated that at least 70% of
total CRM projects implemented will
result in either (B. Foss, M. Stone, & Y.
70% Gartner Survey
losses or no bottom-line Ekinci, 2008)
improvement in
organisation performance
The number of CRM systems
implemented that failed using an in-
60% Macsweeney (2000) (Bull, 2003)
house/custom-developed CRM
software
Source: Multiple sources
65
3.4 Market Analysis
3.4.1 The Nigerian and South African contexts

South Africa and Nigeria have been described as “Africa hegemons” on the basis
of their economic, political and military leadership on the continent (Adebajo &
Landsberg, 2003, p. 171). Besides being the only two economies in sub-Saharan
Africa identified as SANE (South Africa, Algeria, Nigeria and Egypt) economies,
which represent half of Africa’s land mass and a third of its population, and
account for about half of Africa’s GDP, these two countries have a set of
characteristics that differentiate them from each other. Therefore, to fully
understand the South African and Nigerian economies, it is necessary to perform
a critical assessment of how each country compares against such characteristics
as political history, economy, socio-cultural environment, technology
advancement, ICT development index, democracy index, corruption perception
index, and global competitiveness.
Table 3-6 provides an assessment of the Nigerian and South African contexts
along such characteristics as political history, economy, socio-cultural factors,
ICT development index, financial sector development index, democracy index,
corruption perception index and global competitiveness index.together with
relevant sources.
Table 3-6: Assessment of the Nigerian and South African Contexts
Characteristics Nigeria South Africa Sources
Political history:  Former British colony  South Africa was under the (Akwule, 1991)
 Nigeria gained its independence in apartheid regime between 1948 http://www.sahistory.or
1960. and 1994 g.za/liberation-
 Two main coups in 1966 and 1983  It is believed that repression was struggle-south-africa
brought a military government to rife in South Africa long before (CIA, 2013)
power the apartheid system was
 A bloody civil war from 1967-1970 entrenched

st
 Previous and still existing religious, 1 democratic elections took
ethnic and economic tensions place in 1994. President Nelson
between North and South due to Mandela was elected as the first
disparities of education and black president
economic status  Country is divided in racial terms
 Nigerian President Olusegun consisting of Africans, Coloured,
Obasanjo, South African President Whites and Indians
Mbeki and Algerian President  Rated as one of the politically
Bouteflika launch New Partnership stable countries in Africa
for African Development or Nepad
with the aim to foster trade in Africa.
Economy:  GDP (Current US $) (billions): 173.0  GDP (Current US $) (billions): World Bank (2010)
 GDP growth (annual %): 5.6% 285.0
 Inflation, GDP Deflator (annual %): -  GDP growth (annual %): -1.8%
0.6%  Inflation, GDP Deflator (annual
%): 7.3
Socio-cultural:  Africa’s most populous country with  Population of 50 million United Nations (2011)
over 162.4 million inhabitants inhabitants
 Official language is English; but  11 official languages: English, http://www.who.int/cou
many Nigerian also speak Pidgin, Xhosa, Sotho, Zulu, Afrikaans, ntries/zaf/en/
Yoruba, Ibo and Hausa  Key social issues include high http://www.unicef.org/i
 More than 250 tribes crime rate, rampant HIV/AIDS, nfobycountry/southafri
 Life expectancy: 52 years for men lack of cohesion amongst racial ca_statistics.html
and 53 years for women groups, high unemployment rate

 Literacy (percentage of population particularly amongst the youth
age 15+): 60 and wide skill gaps that need to
 Main religions: Islamic, Christianity be filled through good education
and individual beliefs systems
 Life expectancy at birth: 54 years
for men and 55 years for women
 Literacy (percentage of
population age 15+): 97 (based
on 2010 figures)
 Main religions: Christian, Islamic,
Budhist, Hindus and African
68
independent churches
ICT development index: combines Rank: 122 (2010); 125 (2008) Rank: 97 (2010); 94 (2008) ITU 2011
11 indicators into a single measure Score: 1.85 (2010) 125 1.54 (2008) Score: 3.0 (2010); 2.71 (2008)
that can be used as a benchmarking
tool globally, regionally and at the
country level to compare
developments in information
communication technologies. These
are related to ICT access, use and
skills, such as households with a
computer the number of Internet
users; and literacy levels.
Financial sector development  Rank: 60 (2011);  Rank: 29 (2011); World Economic
index: provides a holistic view of the  Score: 2.4 out of 7  Score: 3.64 out of 7 Forum-Financial
factors that contributes to long term Development Report,
development of financial systems in 2011
countries. It resides on seven pillars World Bank
consisting of institutional
environment, business environment,
financial stability, banking and non-
banking financial services, financial
markets and financial access.
69
Democracy index: is an index  Rank: 119 out of 167 countries  Rank: 28 out of 167 countries Economic Intelligence
compiled that measures the state of (2011); 123 out of 167 (2010) (2011); 30 out of 167 (2010) Unit (2011)
democracy in 167 countries using 60  Score: 3.83 out of 10 (2011); 3.7 out  Score: 7.79 out of 10 (2011); 7.79
indicators grouped in five different of 10 (2010) out of 10 (2010)
categories: electoral process and
pluralism, civil liberties, functioning of
government, political participation
and political culture.
Corruption perception index:  Rank: 139 out of 174 countries  Rank: 69 out of 174 countries (Transparency, 2012)
ranks countries according to their (2012) (2012)
perceived levels of public sector  Score: 2.7 out of 10  Score: 4.3 out of 10
corruptions on a scale of 0 (Highly
corrupt) to 10 (Very clean)
Global competitiveness index: is  Rank: 127 out of 142 countries (for  Rank: 50 out of 142 countries World Economic
th
a comprehensive tool that measures both 2011 and 2010) (2011) and was ranked 54 in Forum, Global
the  Score: 3.4 out of 7 2010 Competitiveness
micro-and macroeconomic  Score: 4.3 out of 7 Report 2011-2012
foundations of national
competitiveness which is defined as
“the set of institutions, policies, and
factors that determine the level of
productivity of a country”.
70
Based on the above assessment, it is evident that South Africa outperforms
Nigeria in most, if not, all key indicators mentioned below. With a population of
over 150 million inhabitants, Nigeria can offer businesses a superb opportunity to
tap into its consumer markets. However, it appears from the above indicators that
this can be a challenging proposition as the country is neither globally
competitive nor has a good corruption perceptions index. Although there have
been pockets of instability in different parts of the country, its socio-political
environment is still rated as fairly stable (Soludo & Governor, 2007). Nigeria has
made noteworthy strides on the economic front over the past few years. It is
forecast that this growth will continue and will position Nigeria as one of the top
thirteen emerging countries by 2050 (Hawksworth & Cookson, 2008).
With regards to South Africa, despite its political struggle during the apartheid
era, which culminated with the first democratic elections of 1994, the country has
fared well on the economic front and also on its ability to attract foreign direct
investment (Schwab, 2011). However, there is still a lot to be done in public
service delivery, policy stability, reduction of employment and high crime rate.
Similarly, the ICT sector must be given more attention (Blanke et al., 2011). The
Marikana unrests in the Lonmin mines that occurred in August 2012 and which
led to the death of 44 miners have “threatened to weaken Africa’s largest
economy” (Chapple & Barnett, 2012). On the basis of this latest development, the
trajectory of FDI in South Africa remains uncertain.
3.4.2 Characteristics of the banking and mobile telephony sectors
This section focuses on the banking and mobile telephone sectors. It highlights
key global players in each industry, the major developments and trends as well
as the current state of each industry in both Nigeria and South Africa. Moreover,
the adoption of CRM in the mobile and banking industries are discussed.
71
A. The banking sector
- Overview of the banking sector
The Lehman collapse on 15 September 2008 had profound impact on both the
high income, industrialized and emerging economies (Hesse & Frank, 2009).
Table 3-7 demonstrates the world’s largest bank based on market capitalization
as of January 2012. China dominates the list with 4 Chinese banks listed
amongst the top 10 banks in the world, then followed by the USA.
Table 3-7: Top 10 World’s Banks by Market Capitalisation

Market cap ($b,
Rank Bank Country
20/1/2012)
1 Industrial & Commercial Bank of China (ICBC) China 240.95
2 China Construction Bank China 195.85
3 Wells Fargo & Co US 160.72
4 HSBC Holdings UK 150.90
5 Agricultural Bank of China China 141.73
6 JP Morgan Chase US 140.95
7 Bank of China China 128.80
8 Itau Unibanco Brazil 88.17
9 Citigroup US 86.67
10 Commonwealth Australia 82.62
Source : http://www.relbanks.com/best-banks
- Banking in Africa
The banking industry in Africa is mainly dominated by South African, Nigerian

and Moroccan banks. The table below shows the leading banking institutions on
the African continent.
72
Table 3-8: Top Banks in Africa
Capital Assets
Rank Bank Country
($m) ($m)
1 Standard Bank Group RSA 7,275 162,133
2 FirstRand Banking Group RSA 6,303 106,156
3 Absa Group RSA 4,742 83,11
4 Investec Bank RSA 4,324 55,679
5 Nedbank Group RSA 3,594 60,905
6 Zenith International Bank Nigeria 2,935 15,155
7 First Bank of Nigeria Nigeria 2,808 13,339
8 Attijariwafa Bank Morocco 2,637 32,362
9 Groupe Banques Populaire Morocco 2,606 23,37
10 Oceanic Bank Nigeria 1,75 8,265
Source : http://www.relbanks.com/best-banks
Table 3-8 shows that South Africa dominates the ranking as 50% of the top 10
banks in Africa are from South Africa.
Banking in the African context can be viewed from both the formal and informal
sector perspectives. People who are formally employed are normally good
prospects for banking products from established banking institutions. Whilst the
informal markets which was previously disregarded by financial institutions, have
created an opportunity for new players, namely, the micro-lending institutions to
provide the necessary financial access to this segment of the population. Most
products offered by these lending institutions tend to be short-term loans
reimbursable between 1 and 6 months.
- CRM Implementation in the banking industry
CRM is being implemented in the banking sector in Africa and the proliferation of
cellphones have made this even more relevant (Anderson, 2010).
73
In Kenya, mobile money transfer through M-pesa has become a convenient way
for the African consumers to transfer money. Similarly, Econet Wireless has
recently launched in Zimbabwe Ecocash to allow its consumers to transfer
money via their mobile phones. It was also reported by Total telecom (2011) that
MasterCard has invested in mobile software developer mFoundry to expand
consumers’ ability to use their smartphones as payment devices. In November
2011, First National Bank, one of South Africa’s top four banks launched its
ewallet solution which enables its customers to pay money from ewallet directly
to a bank account. This facility also allows for the payment of bills (Mansfield,
2011).
It is without doubt that banks are increasingly launching applications to enable

easier banking for their customers. As part of this, they hope to build customer
loyalty and improve their revenues.
B. The mobile telephony sector
- Overview of the mobile telephony sector

Except from fixed telephony which has been experiencing a consistent decline in
its penetration rate for the past seven years, the ICT sector continues to grow
rapidly; particularly in terms of the provision of mobile cellular and mobile
broadband services (ITU, 2012). “The robust penetration rates for mobile cellular
and mobile broadband services have particular relevance for the rollout of
mobile banking services” (ITU, 2012). According to statistics produced by
Ericsson, global mobile penetration reached 85% in Q4 2011, a 4% increase over
last quarter. China and India represent more than 35% of this additional new
subscription representing 185 million new subscribers. Global mobile subscription
now totals 5.983 billion (Blycroft, 2012)). The mobile penetration level in
developing countries is estimated at 78.8% (ITU, 2012). The figure below
provides a spread of mobile subscriptions in the global markets.
74
Figure 3-4: Global Mobile Subscriptions by Regions Q4 2011
Source: (Blycroft, 2012)
Mobile banking has changed the face of banking in Africa. Nowadays more and
more consumers, regardless of their locations, access (or lack of it) to
infrastructure are now able to do their banking over the phone. According to
(Gartner, 2012), worldwide smartphone sales to end users soared to 149 million
units in the fourth quarter of 2011, a 47.3 per cent increase from the fourth
quarter of 2010. It also published that total smartphone sales in 2011 reached
472 million units and accounted for 31 percent of all mobile devices sales, up 58
percent from 2010 (Gartner, 2012). Table 3-9 illustrates the main mobile device
vendors, their units sold and market share acquired in 2011 and 2010.
75
Table 3-9: Worldwide Mobile Sales by Vendors during Q4 (2011)
2011 2010
2011 Market Share 2010 Market Share
Company
(%) (%)
Units Units
Nokia 422,478.3 23.8 461,318.2 28.9
Samsung 313,904.2 17.7 281,065.8 17.6
Apple 89,263.2 5.0 46,598.3 2.9
LG Electronics 86,370.9 4.9 114,154.6 7.1
ZTE 56,881.8 3.2 29,686.0 1.9
Research In Motion 51,541.9 2.9 49,651.6 3.1
HTC 43,266.9 2.4 24,688.4 1.5
Huawei 40,663.4 2.3 23,814.7 1.5
Motorola 40,269.0 2.3 38,553.7 2.4
Sony Ericsson 32,597.5 1.8 41,819.2 2.6
Others 597,326.9 33.7 485,452.0 30.4
Total 1,774,564.1 100.0 1,596,802.4 100.0
Source: (Blycroft, 2012)
- Mobile telephony in Africa
The meteoric rise of Africa’s mobile cellular subscriptions has exceeded forecasts
made by industry experts (ITU, 2012). In September 2011, Africa became the
second most connected region in the world in terms of mobile subscriptions
count, reaching more than half a billion number of mobile telephone users on the
African continent (Rao, 2011). It is forecast that an additional 224 million mobile
users will be added to this base over the next five years (Rao, 2011). Whilst the
penetration rate in the rest of the African continent remains low, averaging at
41%, in South Africa it exceeded 110% penetration barrier during the year 2011
(Blycroft, 2012). This high penetration rate in South Africa is telling of the state of
its mobile telephony industry, which is, without doubt, saturated.
The mobile telecommunications sector of South Africa is one of the most

advanced in Africa. In 2010, it contributed about 2.8% to the SA Gross Domestic
76
Product (GDP) (Esselaar, Gillwald, Moyo, & Naidoo, 2010). According to
Esselaar et al. (2010, p. 4), “mobile services continue to grow, with the operators
reporting more than 100% SIM penetration, though the 2007-2008 IRIA
household survey suggests a penetration rate close to 65%, with at least 10% of
respondents indicating they have multiple SIM cards.” In South Africa, the
Department of Communications reported more than 37 million users or about 95
percent of mobile phone users, had registered by June 2011 (Jentsch, 2012).
The SA mobile telephony industry has six players namely Vodacom, MTN, Cell-C
and 8ta (the latest entrant in the mobile telephony industry) and the virtual mobile
operators: Virgin Mobile and Red Bull. These virtual mobile operators use the
infrastructure provided by current mobile operators.
All of the above-mentioned companies service both the post-paid and pre-paid
markets. Statistics from the service providers show that more than 85% of these
companies’ customers are concentrated on the prepaid market. A research report
published by RIA (2012) has revealed that the South African prepaid pricing
structure is one of the highest in Africa. It asserts that South African mobile
operators do not compete on price. “MTN has had the highest prices for the low-
user basket, at between ZAR 95,05 and ZAR 96,04, while Vodacom has stayed
constant at ZAR 81,26. At the end of 2011, the average price of the low-user
basket was ZAR 81,91, with 8ta at an average of ZAR 77,45 and Cell C at ZAR
72,15.” (RIA, 2012, p. 4).
77
Figure 3-5: South Africa, low user basket in Rand (zar)
Source: RIA, 2012
Mobile operators in South Africa operate in a fast paced and challenging industry
characterized by network connectivity issues, highly competitive markets (due to
mobile number portability which allows cellphone users to change service
providers whilst keeping their phone number has increased churn rate), price
sensitive customers in the pre-paid market, ongoing regulatory pressures and an
increasingly informed and savvy customer (Buys & Malebo, 2004; RIA, 2012).
The ICT industry in South Africa is regulated by the Independent

Communications Authority of South Africa (ICASA) which was “established in
July 2000 after a merger between the telecoms regulator and the broadcast
regulator” (Wallace, Vergeer, & Metfula, 2012, p. 67) . ICASA monitors licensee
compliance and develop industry regulations. It also protects consumers.
ICASA’s full mandate is embodied in the Electronic Communications Act .
Whilst one may acknowledge the great success of mobile operators in South
Africa, it is understood from the extant literature that the largest and untapped
mobile telephony opportunities on the continent remain in Nigeria.
78
The telecommunications industry in Nigeria is regulated by the Nigeria
Communications Commission (NCC). The NCC, just like many other regulators
has seen its mandate expand over the past five years to also include information
technology and broadcasting (ITU, 2012). “More recently, electronic content,
cybersecurity, data protection, privacy and environmental issues have entered
into the purview of regulators. The increased use of online applications and
services to communicate and do business (such as social media, cloud services,
e-payment and other m-banking services) bring a host of new regulatory issues
to the fore, for all ICT stakeholders” (ITU, 2012, p. 2).
Since the introduction of GSM in September 2001 in Nigeria, the face of its
telecommunications industry has changed drastically and even surpassed the
most optimistic projections on the number of subscribers (Esharenana, 2005). It
has been forecasted that Nigeria will be the largest mobile market by 2016 with
over 150 million subscribers (Informa telecoms media, 2012).
Figure 3-6: Market Share of Mobile Operators in Nigeria (December 2011)
Source:(Blycroft, 2012)
79
As per table 3-6, there are 5 main players in the mobile telephony sector of
Nigeria consisting of MTN (with the largest market share of 40%), followed by
Globacom (20%), Airtel, Etisalat and Mtel.
Today, African mobile telephony companies, regardless of their size, have no

option but to re-engineer their customer offerings to remain competitive. This
study will now examine the adoption of CRM in the mobile telephony industry.
- CRM implementation in the mobile telephony industry
The available literature covers extensively the implementation of CRM in the

mobile telephony sectors (Anderson, 2010; Coelho & Henseler, 2012; Deng et
al., 2010; Kalba, 2008; Leppäniemi & Karjaluoto, 2008; Santouridis & Trivellas,
2010). Although, as mentioned before, most of the literature focuses on high
income markets, It ought to be noted that there is an increasing number of
papers that are giving attention to customer service and how companies build
and retain customers through mobile applications in emerging markets
(Anderson, 2010; Chircu & Mahajan, 2009; Haridasan & Venkatesh, 2011; Kalba,
2008; Shengdong & Xue, 2011). The underlying reason behind this interest in the
mobile telephony industry could be attributed to the dramatic impact that the
mobile telephony is having on the socio-economic development of emerging
countries (ITU, 2012). The main countries included in the literature from the
emerging markets consist of India, Iran and China whilst the CRM areas covered
include churn rate reduction, customer loyalty, acquisition and retention of
customers.
For example, Haridasan and Venkatesh (2011) investigated how CRM is

practiced by 7 mobile service providers in India. As part of this investigation, they
attempted to ascertain how service quality impacted on customer loyalty. Their
research results reveal that there are a set of parameters that affect CRM
practices in India. Similarly, Won-Moo, Jungkun, and Minsung (2010) examined
how different types of commitments and benefits lead to customer loyalty in the
80
mobile telephony industry of South Korea. They found that a mobile service
provider’s ability to retain customers greatly depends on the functional and
economic benefits of the services it offers. Moreover, their studies also reveal
that experiential benefits have an impact on cross-selling and positive word of
mouth.
From the above, it appears that CRM is increasingly being implemented in the
mobile telephony and banking sectors within Africa. It also needs to be added
that there are likely to be differences between emerging and developed markets’
approaches to CRM execution in these industries. This is the purpose of the
study. To further address this research purpose, an embedded case study
analysis of four companies across Nigeria and South Africa was conducted. The
next chapter expands on the research methodology that was employed.
81
CHAPTER 4: RESEARCH METHODOLOGY
This chapter covers six sections, including (1) an introduction, (2) the research
design and paradigm, (3) the population and sample, (4) the data collection
method, (5) the methods of data analysis and interpretation and (6) the criteria for
rigorous qualitative data analysis.
4.1 Introduction
In essence, social research provides three types of research methods consisting
of qualitative, quantitative and mixed research methods (Creswell, 2009). Each of
these research methods has both advantages and disadvantages and they
should be given some consideration by the researcher in the initial stages of the
research process.
In this study, a qualitative research method in the form of a multiple embedded

case study research has been adopted against other social research methods
encompassing experiments, surveys, histories, and economic and epidemiologic
research (Yin, 2009). There are valid underlying reasons behind the choice of
this method; which, together with its advantages and disadvantages will be
discussed in the next section. The research process in itself was very rigorous
and followed Yin (2009) linear but iterative process consisting of six stages as
depicted in figure 4-1.
82
Figure 4-1: The Research Process
Prepare
Plan Design Collect
Share Analyze
Source: (Yin, 2009)
At each stage of this research process, there were clearly defined tasks
performed by the researcher that allowed for a sound, robust research input and
throughput which, at the end of the process, positively impacted on the overall
research output and the reliability, credibility and validity of the research findings.
Table 4-1 provides an overview of the description of key activities that took place
during each research stage:
83
Table 4-1: Description of Research Activities by Research Stage
Research stage Description of activities
Plan  Define the research objective and the problem to be
resolved.
 Identify research questions or other rationale for doing a
case study
 Select an appropriate research method
 Understand its strengths and limitations
Design  Define the unit of analysis and the likely case (s) to be
studied
 Identify the case study design (single, multiple, holistic,
embedded)
 Define procedures to maintain case study quality
Prepare  Hone skills as a case study investigator
 Develop a case study protocol
 Conduct a pilot
 Identify key facilitators for fieldwork in each company as
well as potential research respondents
 Set up interview dates and times
Collect  Follow case study protocol
 Use multiple sources of evidence
 Create case study evidence
 Maintain chain of evidence
Analyse  Explore rival explanations
 Develop data summary form for each case study
 Further analyse and validate data in Maxqda content
analysis software
 Individual and cross analyses of companies under study
Share  Present and write up study results
 Display enough evidence for reader to reach own
conclusions
 Review and re-write until done well
Source: Adapted from (Yin, 2009)
84
4.2 Research Design and Paradigm
4.2.1 Research design and motivation for the selected research method
According to Creswell (2009), there are three primary factors that affect the
choice of research design; namely world view, strategy and methods. Other
factors include the research problem, personal experiences and the audience.
Patton (2002) affirms that the research design starts with defining the purpose of
the research which can be seen as the controlling force of the research.
All of the above-mentioned characteristics were taken into consideration during

the design of this study which focuses on case study analyses of four companies
in the banking and mobile telephony sectors of Nigeria and South Africa.
Case study research can be defined as an enquiry that helps to understand a

phenomenon in its natural setting (Baxter & Jack, 2008; Saunders, Lewis, &
Thornhill, 2003). Consistent with this logic,Creswell (2007) asserts that case
study research involves the study of an issue explored through one or more
cases within a bounded system. Specifically, it is a qualitative design approach in
which “the investigator explores a bounded system (a case) or multiple bounded
systems (cases) over time through detailed in-depth data collection involving
multiple sources of information (e.g. observations, interviews, audiovisual
materials, and documents and reports), and reports a case description and case-
based themes” (Creswell, 2007, p. 73). It can be concluded that the aim of the
case research is to understand a phenomenon being studied through the
accumulation of multiple entities as supporting sources of evidences (Benbasat,
Goldstein, & Mead, 1987; Bonoma, 1985; Eisenhardt, 1989; Yin, 1981). Yin
(2009) suggests that case study research is best suited when: (a) “how” and
“why” questions are being asked, (b) the researcher’s control over the events is
limited, and finally, (c) when the focus is on a contemporary phenomenon in its
real life context. The main feature of case study research is that the acquired
85
data results in the understanding of the individual case that may include a
person, a company, an industry and so forth Woodside (2010).
There are several advantages associated with case analysis; namely
1. Relevance: The phenomenon can be studied in its natural setting and

meaningful relevant theory can be generated from the understanding
gained through observing actual practice.
2. Understanding: The case method has considerable ability to generate

answers to the question “why” rather than just “what” and “how”
3. Exploratory depth: The case method lends itself to early, exploratory

investigations where the variables are unknown and the phenomenon not
well understood (Benbasat et al., 1987; Eisenhardt, 1989; Meredith, 1998;
Voss, Tsikriktsis, & Frohlich, 2002).
An important number of researchers have also published papers on the

importance of qualitative research as a robust method for theory building
(Deshpande, 1983; Eisenhardt, 1989; G. Morgan & Smircich, 1980). To
emphasize the need for the application of qualitative research methods to various
marketing problems, Sheth (1981, p. 356) commented that researchers need “to
lean towards more exploratory and qualitative tools and tactics (…) rather than
experimental designs, construct development and measurement or laboratory
studies.” It is believed that this type of research lends itself to serendipitous
findings and provides rich and holistic data from which strong conclusions can be
made. By using an inductive method, the researcher is able to “understand the
multiple relationships among dimensions that emerge from the data without
making prior assumptions or specifying hypotheses about the linear or correlative
relationships amongst narrowly defined operationalised variables” (Patton, 2002,
p. 56).
86
In the context of this research, an inductive approach is also relevant because of
the dearth of studies done on CRM in emerging markets. Therefore, by
employing this research method, the researcher aims at developing a theory
based on the experiences of research participants and also the data gathered
from other sources.
Although well praised amongst qualitative research proponents, case study

research has received a lot of criticisms on its lack of rigour (Flyvbjerg, 2006;
Riege, 2003; Riege & Nair, 1997; Yin, 2009). Particularly, the concept of validity,
reliability and scientific generalization or generalisability in qualitative research
has been questioned (Tobin & Begley, 2004). Added to these prejudices are the
vast amount of data gathered which according to the detractors of this research
method is time consuming and leads to large documents (Yin, 2009). Meredith
(1998) suggests that the perceived “unscientific” approach and the triangulation
requirements, access and time, the lack of controls and the complications of
context and temporal dynamics are the disadvantages of case study research.
However, by applying a rigorous approach to case study research, one is bound

to generate many benefits which include, but are not limited to:
 The extensiveness and richness of data

 The ability to capture direct quotations about respondent’s personal, real
life experiences
 The ability to combine other methods of data collection such as
ethnography and participant observation data
 The generation of evidence that can complement experiments.
87
4.2.2 Research paradigm
A research paradigm is a conceptual framework within which researchers

conduct their study (Healy & Perry, 2000). It is “a set of linked assumptions about
the world which is shared by a community of scientists investigating the world.
Additionally, this set of assumptions provides a conceptual and philosophical
framework or “world view” for the organized study of the world” (Deshpande,
1983, p. 101). According to Deshpande (1983), the nature of a paradigm is
relevant for the researcher as it helps in ascertaining the types of problems and
methods to be explored. Miles and Huberman (1994) have synthetised research
paradigms into four categories; namely (a) positivism, (b) critical theory, (c)
constructivism, and (d) realism, along three elements consisting of (a) ontology,
(b) epistemology and (c) methodology.
In order to further explicate the distinctions between the paradigms, a

presentation of the characteristics of each paradigm along each element is
provided in table 4-2. This table depicts how qualitative research operates across
the last three paradigms; namely critical theory, constructivism and realism which
fall under the broader phenomenological paradigm. This study supports the
realism paradigm which is aligned with the inductive approach. Perry (1998, p.
787) posits that “realism is the appropriate scientific paradigm for case study
research”. He bases his arguments on these factors:
 Case study research is contemporary and requires inductive theory
building, realism holds that there is an external complexity; and
 The work done by case study researchers is assessed on such measures
as reliability and validity.
88
Table 4-2: Four Categories of Scientific Paradigms and their Elements
Paradigm
Element and definition Positivism (1) Critical Theory (2) Constructivism (3) Realism (4)
Ontology: it is the reality Reality is real and “Virtual” reality shaped by Multiple local and specific Reality is “real” but only
investigated by the apprehensible social, economic, ethnic, “constructed” realities imperfectly and
researcher political, cultural, and probabilistically
gender values, crystallized apprehensible
over time.
Epistemology: it is the Objectivist: findings true Subjectivist: value Subjectivist: created findings Modified objectivist:
relationship between the mediated findings findings probably true
reality being investigated
and the researcher
Methodology: it is the Experiments/surveys: Dialogic/dialectical: Hermeneutical/dialectical: Case studies/convergent

technique used by the verification of hypotheses, researcher is a researcher is a passionate interviewing: triangulation,
researcher to investigate chiefly quantitative methods transformative intellectual participant within the world being interpretation of research
who changes the social investigated. issues by qualitative and
the reality
world within which by some quantitative
participants live methods such as structural
equation
Source: Adapted from (Healy & Perry, 2000)
89
Furthermore, although case studies are by nature inductive, they also include
some deduction based on prior theory the researcher would have been exposed
to as it would be unpractical for any researchers to start the research with an
“absolutely clean theoretical slate” (Perry, 1998, p. 788). Parkhe (1993) and
Perry (1998) note though that both extremes (inductive and deductive) are not
necessary.
A paper published by Suddaby (2006, p. 234) addresses the myths of grounded

theory when he points out that “grounded theory is not an excuse to ignore prior
literature”. He adds that “the idea that reasonable research can be conducted
without a clear research question and absent theory simply defies logic”. To put it
plainly, it will be difficult for any research to go into the field without a priori
knowledge of previous research conducted in his areas of interests.
Similarly, prominent marketing scholars who have been strong proponents of a

grounded theory that advocated generating theory from data alone, have also
over the years swayed towards a pluralistic, more moderate view of generating
new theories using a deductive and inductive approach (Eisenhardt, 1991).
4.3 Population and Sample Selection
4.3.1 Definition of key concepts: Population and sampling
The population defines a set of entities from which the research sample is to be
drawn (Eisenhardt, 1989). The selection of an appropriate population should not
be taken lightly as it “helps to define the limits for generalizing the findings”
(Eisenhardt, 1989, p. 537). This study focuses on mobile telephony and banking
companies in Nigeria and South Africa. The respondents consist of CRM
Strategy Developers and Implementers involved in a customer relationship
management programme between the years 2005-2012.
90
A non-probabilistic sampling in the form of purposeful sampling is used in this
study. Patton (2002) defines purposeful sampling as “information rich cases from
which one can learn a great deal about issues of central importance to the
purpose of the research.” As described below in Table 4-3, there were a total of
four cases spanning two countries and two industries with a CRM implementation
age ranging from 2 to 12 years.
There are significant participant variances amongst countries and companies.

56% of the total respondent base was in South Africa and the balance of 44% in
Nigeria. Moreover, the interviews in South Africa lasted on average 40 minutes;
whilst in Nigeria, it was about 30 minutes. As further depicted in table 4-4, the
company with the largest number of research participants was SATEL, followed
by SABA, NIBA and NITEL.
A total sample size of 66 was determined by a principle of saturation. Saturation

occurs when the data reaches a point of diminishing return in that there is no new
learning or insight from the additional data that has been collected. During that
stage, all the data themes,”categories have been established and validated”
(Bowen, 2008, p. 140).
91
Table 4-3: Overview of Companies Involved in this Study
Company name Description of business activities CRM implementation

(Number of years)
SATEL: Mobile telephony Rated amongst the top 3 players, this mobile telephonic operator is a multinational 07 years
company in South Africa company with a strong brand awareness in the south African market. It services both
the pre-and post-paid markets. And provides data, voice and telemetry offering
solutions to its South African customer base.
SABA: Banking institution in This is one of South Africa’s top 4 banks with a footprint in other markets in Africa. It 12 years
South Africa has a strong brand equity and a large customer database. However, just like its
nearest competitors, it has been faced with stiff competitions from smaller, medium
size banks such as Capitec which has forced the bank to rethink its business model
and to offer innovative customer offerings to existing and potential customers.
NITEL: Mobile telephony One of Nigeria’s top 5 mobile operators and amongst the last entrants in the mobile 2 years
company in Nigeria telephony markets in Nigeria. This mobile operator is part of a larger multinational
group with interests in Africa and the Middle East.
NIBA: Banking institution in This is a top bank in Nigeria with more than 500 branches located in the main cities of 7 years
Nigeria Nigeria. The bank is headquartered in Lagos. Its vision is to be a reputable
international financial services institution that is recognized for innovation, superior
customer service and performance.
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As illustrated in table 4-4, the total respondents base was sub-divided into three
groups; namely:
 CRM strategists: This group comprises those research participants who

uniquely played a strategic role in the CRM programme includes a cross-
functional team from the organization namely the Project sponsor, the
General manager for CRM, Customer Experience, the Head of Information
Technology, Business Intelligence and Analytics, Contact Centre,
Marketing and more.
 CRM implementers: These are respondents uniquely involved in the
implementation of the CRM strategy for the company. Included in this
category are marketing specialist, CRM technology vendor/ Supplier, IT
users, project manager, Consultant, change specialist and Trainers.
 CRM Strategists and Implementers: This category included those who
fulfilled the CRM strategist and implementer roles. They were mainly
individuals holding middle level management positions in the company
across the different departments.
Table 4-4: Sample Description
Population Countries Industries Respondents
Sample Nigeria Mobile Company Strategists Implementers S&I Total

description telephony (S) (I)
South
SATEL 8 8 4 20
Africa Banking
SABA 7 5 4 17
Sample size 2 2
NITEL 2 6 5 13
NIBA 4 6 6 16
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4.3.2 Sample selection
A. Factors that have influenced the cases selection
The sample selected in this study enabled the researcher to draw conclusion
about the population at large. As part of the sample selection, the following
factors were considered:
1. The relevance of the ICT and banking industries to Africa’s socio-economic

development: These two industries have substantially contributed to job creation,
product innovation and are interlinked now as mobile banking grows in Africa.
They are impacting on the daily lives of the African consumer who is increasingly
becoming savvy, more knowledge and has disposable income to spend on cell
phone or be granted credit facilities by banks. Whilst in the past, Africa only relied
on its natural resources such as oil and gas and mineral resources, the services
sectors of banking and mobile telephony have grown exponentially to the extent
that they have become more competitive as there are more and more entrants in
the market and also, as existing market players are continuously revamping their
solutions or even developing innovative offerings to attract and retain customers.
2. The strategic location and economic status of Nigeria and South Africa. They
are sub-Saharan Africa’s economic powerhouses and are both located in two
separate sub-regions; namely West and Southern Africa respectively. This
provides the researcher with greater opportunities for comparative analyses
between the two regions. Moreover, as the most populous market in Africa with
close to 160 million inhabitants and the 6th largest market in the world (CIA,
2013), Nigeria is an attractive market for research; whilst South Africa’s diverse
ethnic and racial groups, its combined first and third world structures, together
with its peaceful transition from apartheid to a democratic country makes it a
unique case for Africa.
3. Blue chip companies with the history of implementing CRM programmes: The
companies that are included in the sample are major players in their own
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industries and countries with the record of having implemented CRM
programmes. In most instances they are either the leader or hold a second
position in their industries. Most of these companies are homegrown businesses
that have become multinational corporations which add to the uniqueness of
emerging markets. As purported by Sheth (2011, p. 167) “Marketers from the
emerging markets are now globally expanding, especially in other emerging
markets, such as Africa, Latin America, Central Asia, and the middle east. They
are also becoming major global competitors in advanced markets through
acquisitions and organic growth”.
Other reasons for the specific selection of these cases included the researcher’s
prior experience in both the mobile and banking sectors and consequently her
large network in these industries and the chosen companies. The researcher’s
network made it easy for her to access data and also to secure interviews with
participants, particularly executive and senior management teams who have very
tight schedules.
It can be added that the initial research participant list was not exhaustive; but
through internal referrals, the researcher was able to refine her research
participant list by adding more names of team members across diverse business
functional areas that have played an active role in the implementation of the CRM
programme in the company. To ensure that relevant employees with CRM
implementation experience were included in the sample, at the end of each
interview, the researcher asked existing research participants if there were
anyone else in the organization that they knew of or have worked with who can
bring some additional insights into this study. This snowballing approach proved
to be successful; specially in instances where some project team members had
left the project and were replaced by new resources. It also helped the
researcher to confirm that she was speaking to the right individuals in the
organisation (in the instance where similar names were given by other
participants) and also pointed her into the right direction of interviewing those
95
who could bring true insights based on their experiences of CRM implementation
in the organization. The final list was developed whilst already in the field.
Furthermore, the profile of these research participants included employees

across all the hierarchical levels and functional areas of the organization. In this
way, they brought multiple, diverse insights into this research. This was a positive
aspect of the research which also enabled the researcher to address the issue of
participant bias.
B. Multiple versus single case selection
From the very beginning stages of this case study research, the researcher had
aimed at conducting research that can provide convincing results. Having this in
mind, and also being aware of the criticisms that case study research has
received in the past years from its detractors (Rowley, 2002), the researcher
gave special considerations to the sample size for the research participants,
countries and industries. Consequently, when she was faced with the choice of
either one or two or more case studies, she went for a multiple case studies
research approach. Benbasat et al. (1987) have suggested that multiple case
designs are more suitable for descriptive research, theory building or testing.
Moreover, they also allow for cross case analysis and the extension of theory and
they generate lots of data. In support of this view, Yin (2009) asserts that the
evidence from multiple case studies is more compelling. Although it is believed
that any of the design (single case studies or multiple case studies) can lead to
successful case studies, he has suggested that multiple case studies tend to
carry more weight in the eyes of other scholars, the business and academic
communities as a whole as opposed to a single case study which is perceived as
weak. A few short comings related to case studies include time consumption and
high costs.
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C. Holistic versus embedded case studies
Building on previous case study research, scholars have distinguished between

holistic and embedded case studies (Perry, 1998; Rowley, 2002; Saunders et al.,
2003). Holistic case studies assess the case as one unit whilst embedded case
designs identifies a number of sub-units and explore each of them individually.
The outcomes from these units are brought together to provide a perspective on
an overall picture. In her analysis of these case designs, (Rowley, 2002, p. 22)
warns that multiple embedded case studies can be challenging as it may proved
to be difficult to reach a holistic perspective from the analysis of the sub-units”.
In this study, the researcher used a multiple, embedded case study design which
had as the main unit of analysis the CRM programme. The sub-units of analysis
included: Country of CRM implementation, Actors in the CRM programme and
the roles they fulfilled, the industry type and the company within the selected
industries.
4.4 Procedure for Data Collection
4.4.1 Data collection process
Throughout this research, a key principle for data collection that was considered
included the use of multiple sources of evidence which allowed for triangulation
and strengthen the reliability and validity of the research results.
The fieldwork was conducted in two different African countries: South Africa (in
the city of Johannesburg) and Nigeria (in the city of Lagos), respectively. Data
were collected over a period of 2 to 12 months through face -to face and
telephonic interviews. 75% of the interviews were face-to-face and were
conducted at the respondent’s office in Johannesburg, South Africa and Lagos,
Nigeria whilst the balance of 25% was done telephonically or by self-completing
of the discussion guide. Data from three out of the four companies were collected
in three months.
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The interviewing process started off at the beginning of January 2012 in South
Africa. The researcher point of contact in the company differed from one
company to the other one and included the Head of CRM, Direct marketing, Call
centre, and Marketing. An introductory meeting was set up with these individuals
to brief them on the research, the targeted respondent profile and most
importantly to discuss the approach the researcher was to take, given the size of
the organization and the complexity of securing interviews, with the view to
maximize the research output. Then, an initial short list of potential respondents
including their contact details and departments was drawn by the researcher’s
contact person at the company, using the pre-defined respondent criteria as a
guide to select the most suitable respondents. These criteria included: (a) the
respondent’s experience of CRM in the company should be above a year, and (b)
his/her availability for an interview within a 2 to 4 weeks window period. Each of
the respondents was introduced to the researcher via email by a primary point of
contact that was pre-identified by the researcher. This was an ideal avenue for
interview date and time to be agreed upon. A total interview time of
approximately 2650 minutes was conducted. The average interview time
achieved was 40 minutes. The interviews were transcribed and generated just
rich data to develop themes and interpret the participants’ feedback.
After the SA interviews, there was a month recess where the researcher started
to look at the data collected and also ascertained any major learning as part of
the research process. The learning of the South African based research was
applied to the Nigeria case studies. During that recess period, the researcher
planned for the trip to Nigeria. Key tasks during this period included flight
arrangements, identification of potential research participants, scheduling of
interviews and introductory emails to all Nigerian-based participants and ongoing
liaison with potential research participants in Nigeria to ensure the smooth
planning of the interviews.
The researcher then flew to Nigeria for 2 weeks and completed an interview with
the mobile telephony operator in Nigeria. The second interview with the banking
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institution could not be done during that time but the discussion guide was
emailed to NIBA’s employees who took their time to provide detailed written
feedback on the questions posed.
4.4.2 Data sources
Yin (2009) suggests that there are six commonly used sources of evidence for
case study research encompassing: Documents, archival data records,
interviews, direct observation, participant-observation and physical artifacts. In
this study, the data collection sources included: semi-structured interviews,
telephonic interviews, informal conversations and archival data such as project
documents, training manuals, newsletters, annual reports, websites, trade
journals and press releases. These secondary data helped in the triangulation
process to validate the research findings. Yin (2009, p. 115) has argued that “the
most important advantage presented by using multiple sources of evidence is the
development of converging lines of enquiry, a process of triangulation and
corroboration” that assists in producing convincing results.
Table 4-5 summarizes the sources of data, the procedure for data collection and
the key themes covered during the data collection process.
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Table 4-5: Data Sources and Application to the Study
1. Primary data Data collection procedure Examples of research questions Application to the case study
1.1 Qualitative Face to face discussion with respondents  How is CRM defined in your organisation Chapter 5
Interviewing from NITEL, SATEL and SABA in their  Why did you implement CRM?
Semi-structured respective locations:  How did you go about implementing CRM? Chapter 6
interviews  How do you rate your CRM implementation
 Nigeria programme? And why?
Chapter 7
 South Africa  What critical factors (organisational, institutional, etc) Chapter 8
impeded on or enhanced your CRM success/failure?
 What are the peculiarities of the market/environment
Self-completed questionnaires by NIBA
in which you operate that may have affected your
research participants
CRM programme?
2. Secondary data Data collection procedure Examples of themes covered Application to the case study
2.1 Internal Collect internal secondary data from the  As is CRM programme Chapter 3
secondary data business intelligence, human resources  CRM roadmap
and marketing departments. These  Performance areas- including financial and non- Chapter 5
included project documents, annual financial metrics
Chapter 6
reports, company press releases, and  Organisation culture, leadership and talent
informal discussion  Company position, its brand and its vision Chapter 7
2.2 External  Electronic database from Wits  Emerging markets Chapter 1

secondary data business school, HEC-Montreal,  Banking in developing countries
New York University (Leonard  Available CRM frameworks/Emergence of CRM in Chapter 2
Stern School of Business) Africa/Mobile telephony in Africa
Chapter 3
 Leading academic journals  Evolution of mobile application
 Participation in conferences  Theoretical development Chapter 4
 Participated in doctoral  CRM success factors
consortiums Chapter 5
 Trade journals
 Internet Chapter 6
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4.4.3 Research instrument and protocol
As stated earlier, the data sources used in this study consisted of both primary
and secondary. The research instruments consisted of a discussion guide and
recording materials. The discussion guide was piloted prior to the start of the
fieldwork. The interviews with the research participants across all countries were
held in English (See appendix A for discussion guide). Because of the
exploratory nature of the research most of the questions were open-ended. The
researcher opted for a funnel approach in her questions by first asking broad
question and then bringing the conversation down to specific areas of CRM
implementation in the company. For instance, the first two questions asked were:
 How is CRM defined in your company?

 Why did you implement CRM?
These broad questions also assisted the research participant to be more at ease
from the start of the discussion. Thereafter, the questions shifted specifically to
the CRM implementation program.
A design protocol, also referred to as “a road map” was used to enhance the
validity and reliability of the data (Enarson, Kennedy, & Miller, 2004, p. 1036). A
protocol is more than a research instrument. Besides the set of questions it
contains, it also has the procedures, the general rules applicable to the
instrument and clarifies the sources of information and who is responsible to
obtain this information (Voss et al., 2002). In a nutshell, a research protocol
provides a robust basis for the documentation of the evidence gathered during
the research. Consequently, it can serve as a prompt or checklist for the
fieldworker. The central point of a protocol is a set of questions asked during the
interview.
For this study, the research protocol includes six main sections consisting of: (a)
Abstract; (b) Study Description including sub-topics as study question, rationale,
objective, design and methods, project management and references, ; (c) Ethical
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consideration; (d) Significance of the study (or expected impact); (e) Budget and
(e) the Investigator’s role.
In general, the research protocol; was well adhered to by the researcher. Having
said this, the researcher found it difficult to obtain the signature of the consent
forms by all the research participants. Specifically, South African research
participants adhered to research protocols by signing off all documents that were
approved by the Wits University Ethics Committee namely, “The consent form for
participating in the interview” and “The consent form for the interview to be tape
recorded” as opposed to Nigerian respondents who flatly turned down the
opportunity to protect themselves by signing off these consent forms.
At first, research participants in Nigeria were very suspicious of engaging with the
researcher. Although they were reassured that the right processes have been
followed, and most importantly, that the information shared with the researcher
will be treated with utmost care and confidentiality, they declined to sign off the
consent forms.
4.4.4 Methods of data analysis and interpretation
Qualitative data analysis can be arduous (Creswell, 2007; Eisenhardt, 1989). It

involves the preparation and organization of data for analysis and the
development of specific themes through a process of coding and the presentation
of data in the forms of tables or figures. The researcher has both manual and
electronic methods at her disposal to analyse and interpret data.
(Yin, 2009, p. 126) notes that “data analysis consists of examining, categorising,
tabulating, testing or otherwise recombining evidence to draw empirically based
conclusions”. According to Easterby-Smith, Golden-Biddle, and Locke (2008),
qualitative data analysis include eight steps namely familiarisation, reflection,
data reduction, writing narratives of the changes, coding and conceptualisation,
sorting and cataloguing activities and outcomes, and re-evaluation.
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In this study, the data was collected from multiple sources including both primary
and secondary. The semi-structured interviews were digitally recorded,
transcribed, and then content analysed using both a contact summary form and a
qualitative software analysis package called MAXQDA analysis. Whilst MAXQDA
was used in this analysis on the basis of its robustness, there are many other
qualitative software packages available in the market. (Creswell, 2007) provides
an exhaustive list of programmes that can be used which include Atlas.ti, NVivo
and HyperESEARCH.
The researcher started off with her data analysis by firstly focusing on within case
analysis, an approach that is recommended by (Miles & Huberman, 1994). They
suggest that within case analysis should always precede cross-case analysis.
Then, the cross case analysis followed and it allowed for the investigation of
similarities and differences between the cases. Lots of customer insights were
generated from the collected data. New propositions and a conceptual framework
were derived from these analyses. Table 4-6 exhibits the CRM construct
measurement properties that were applied.
Table 4-6: CRM Construct Measurement Properties
Category Codes
Country South Africa, Nigeria
Strategist, Implementer, Strategist and Implementer
Roles/Actors
(SandI)
Industry Telecom, Banking
Companies SATEL, SABA, NITEL, NIBA
The estimated consolidated responses for each of the respondent groups and
different cases were used to ascertain the contingency factors for CRM success
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and failures. Moreover, micro-level analyses within each respondent were
performed to identify patterns or outliers.
As part of the analysis, recurring words were grouped under three main themes
of organizational, institutional, customer data factors. These factors that emerged
from the data analysis were then considered against those found in the literature
review and were such naming as: “consistent with-no adaptation is required”;
“consistent with the literature- adaption is required” or “inconsistent”. This
approach was applied to each of the cases individually first.
4.5 Criteria for High Quality Research Design and Analysis
Although the literature provides extensive findings on the criteria that define
“quality” in scientific research, there is limited research focusing specifically on
the realism paradigm. Realism researchers have instead been using a
combination of criteria applied to positivist and constructivism researches (Healy
& Perry, 2000). By contrasting quality criteria in realism with other paradigms
such as positivism, critical theory and constructivism, Healy and Perry (2000)
have suggested six criteria for assessing quality for realism research, namely:
1. Ontological appropriateness: This refers to the reality of the researcher. Healy
and Berry believe that the distinction between the three worlds namely realism,
positivist and constructivism are important as the reality of the researcher in each
of these contexts is not the same.
2. Contingent validity: The realist does not view the world as a laboratory; but as
an open system which allows her to have multiple perceptions of the same
reality.
3. Epistemology: the realism research is value aware and not value-laden.
4. Methodological trustworthiness: it is defined as the extent to which the

research can be audited by developing a case study database and by the use of
quotations in the written report.
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5. Analytic generalization: Whereas positivism focuses on theory testing, realism
focuses on developing a theory.
6. Construct validity: It refers to how well information about the constructs in the
theory being built is measured in the research.
According to Yin (2009), an authority in case study research, the quality of a case
study design can be maximized if these four conditions are met:
 construct validity,
 internal validity,
 external validity, and
 reliability
To support this discussion, (Riege, 2003) has provided marketing researchers

with techniques to showcase validity and reliability throughout their research
process.
The researcher has combined Healy and Perry (2000) and Yin (2009)’s quality
criteria with (Riege, 2003)’s techniques for evaluating validity and reliability in a
table that illustrates how quality was approached in her research along the
following six dimensions of ontological appropriateness, epistemology, construct
validity, internal validity, external validity and reliability. An illustration of how
these conditions were met in this research is in table 4-7.
Table 4-7: Criteria for Judging Quality in Case Study Research
105
Criteria Brief description Research technique applied to Research stage Criteria
this research proposed by
Ontological appropriateness: This Research problem deals with Selection of the most relevant Planning and (Healy & Perry,
deals with the researcher’s complex social science phenomena research problem. Questions are design 2000)
reality involving reflective people “how” and “why”
Epistemology: This deals with Multiple perceptions of participants- Multiple interviews with participants Data collection (Healy & Perry,
how the researcher relates to its Neither value-free nor value-laden across different hierarchical levels 2000)
world rather value aware and functions of the company. Four
companies of which two were in
banking and two in mobile
telephony. Two countries located in
two different sub-regions.
Other sources of evidences such

as archival data stemming from
company brochures, project
documents, training manuals,
industry reports and websites
Observation: participant
observation
Construct validity: Identifying correct operational As mentioned earlier, multiple Data collection (Riege, 2003;
measures for the concepts being sources of evidence were used to Riege & Nair,
106
studied allow for triangulation Share 1997; Yin, 2009)
A chain of evidence was

established
Key research participants have

reviewed the draft case study
report
Prior theories were also used
Internal validity: it is appropriate It seeks to establish a causal within case analysis and then cross Data analysis (Riege, 2003;
for causal and explanatory relationship whereby certain case pattern matching were Yin, 2009)
studies only and not descriptive conditions are believed to lead to undertaken
or exploratory studies other conditions
External validity It is about defining the domain to Replication logic was used Design (Riege, 2003;
which a study’s findings can be Yin, 2009)
Evidence was compared with
generalised
extant literature
Independent external validation:

Enlisted independent experts
Peer reviews by other final year

doctoral candidates
107
Reliability It demonstrates that the operations Case study protocol was developed Data collection (Riege, 2003;
of a study such as the data and refined Yin, 2009)
collection procedures can be
Observations and actions were
repeated with the same results
recorded
Source: Adapted from (Healy & Perry, 2000; Riege, 2003)
108
Thus, to address the criticisms that qualitative research suffer from, data was
collected from both primary and secondary sources and then triangulated. Voss
et al. (2002) suggest that triangulation through the use of various data collection
methods can strengthen the validity of data. Theory triangulation was also
achieved by using multiple theories to interpret the data; namely the institutional
theory and Hofstede’s fifth value dimension of national culture, short and long
term-orientation. The generalisability of qualitative research findings is a
weakness of this research method. However, the depth of what was being
investigated as well as the size of the sample, the multiple countries and industry
focus of this study, the researcher did not just generate lots of insights and
extensive data but she was also able to address the shortcomings associated
with case study research.
Having presented the research methodology in this chapter, the focus will now be
on the results of the analysis as covered in chapters 5 and 6.
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CHAPTER 5: CASE STUDY RESULTS
Focus on a Bank (SABA) and a Mobile Telephony Company

(SATEL) in South Africa
5.1 Introduction
This chapter is primarily concerned with the presentation and interpretation of

research results from CRM implementation at SATEL and SABA, in sections 5.2
and 5.3 respectively. In these sections, an overview of the “As is” CRM
implementation situation is described by concentrating on each company’s
current CRM practices, identified CRM measures, outcomes of CRM
implementation and causal factors of such outcomes. Then, detailed research
findings, along the three dimensions of organizational, customer data and
institutional factors as well as the verbatim quotes from research participants are
presented.
The last section of this chapter, section 5.4, summarises the research findings
and presents the key insights drawn from the mobile and banking industries
within South Africa.
5.2 Results from CRM Implementation at SATEL
5.2.1 Overview of the “As is” CRM implementation at SATEL
Considering its large subscriber base, SATEL is one of the leading

telecommunications operators in South Africa. It aims to build and maintain a
sustainable competitive advantage in its markets by understanding and fulfilling
its customer requirements. It is this customer-centric philosophy that propelled
SATEL to embark upon its CRM programme 7 years ago. In addition to this, the
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company’s tighter profit margins and a shrinking market share, mainly due to
competitive pressures and heightened customer expectations, have elevated
SATEL’s agenda on improved and sustained relationship with its customers in a
market that has reached mobile phone saturation. This study on SATEL’s CRM
implementation programme reveals that whilst it may have added some value to
the organization, the value has been difficult to measure as noted by one the
research participants:
CRM has added value; but the value is slow to emerge as to what was anticipated. This is due to
(IT and adoption rate of new data) maturity and data issues.
From the above, it is apparent that the realization of the CRM programme’s full
benefits remains a concern at SATEL. These concerns are also well
encapsulated in the comments made by this middle level Manager:
There is an inability from the CRM team to get down into the detail of CRM implementation…to
understand how customer touch points operate in order to design an appropriate CRM strategy
and implement it. I am not confident that anything tangible would come out of this current CRM
process.
Another research participant, a Senior Level Manager, added these remarks:
We have one of the best CRM systems…The Siebel system. We haven’t made a successful
transition to the CRM system as of yet. Currently, many of the legacy systems, when I say legacy,
it would be the custom systems that have been developed, are still in use. And it will take months
to years to change all of our content environment, our online services, all of that needs to be
transitioned to the CRM system. It does take a very long time. In no way can we be classified in
having a successful implementation that is being used across the board.
These research participants’ views justify the overall “average” rating that was
assigned to the CRM implementation programme initiated by SATEL. They also
provided invaluable feedback that enabled a thorough understanding of how
SATEL when about implementing its CRM programme, identifying its measures,
achieving its outcomes as well as linking these outcomes to specific causal
factors. Figure 5-1 provides a snapshot of the “As is” CRM implementation at
SATEL.
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Figure 5-1: “As is” CRM Implementation at SATEL
“As is” CRM Implementation at SATEL
CRM Practices
1 There is a CRM road map in place
The company has the best breed of the CRM technology i.e
Siebel systems
CRM is led from the segment models which has not been
updated since its launch
Measures Implications/Interpretation
2
Company has 58 dimensions across marketing, finance
and other areas.
Overall aim is to increase ARPU, reduce capital
expenditure, decrease customer complaints Whilst SATEL does have the building blocks
Measures are not always used of a successful CRM programme in place, its
Outcomes challenges lie in the operationalisation of its
3 Programme. This justifies the average rating it
Difficult to see the tangible contribution as the total obtained from the research participants with
business performance can’t be linked to the CRM regard to the successful implementation of its
programme CRM programme.
Causal factors
4
The causal factors are linked to:
Organisational,
Institutional, and
Customer data factors
Figure 5-1 illustrates that there is a CRM roadmap at SATEL which has been
internalized by the business. However, this internalization process was not
achieved overnight. SATEL’s CRM programme is driven by the Head of Sales
with multiple responsibilities across other functions. This clearly speaks to the
misalignment between the CRM structure and the CRM vision as the Head of
SATEL is only interested in the next quarter’s sales figures. Moreover, this
current situation assessment of CRM implementation at SATEL reveals that:
 A segmentation model is used to run campaigns; but the model has not been
updated for a few years.
 The outcomes of campaigns are not consistently measured, and findings are
not always fedback into the campaign management process. Marketing
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campaigns are executed in silos leading various departments to speak over-
communicate with specific customers. This creates some agitation on the
customer’s side.
 The individuals who designed the segmentation model do not have an
understanding of what segmentation means.
 There are multiple definitions of CRM and other marketing concepts in the
organization. These have hampered the definition of business rules, and have
had an impact on the business and technical specifications of the software
tool required by SATEL. In a way, the lack of common understanding of
marketing related terms have to some extent affected the successful delivery
of the program and the acquisition and retention of the types of talent required
by the company to deliver on its CRM mandate.
 IT integration capabilities are limited.
 Customer data is not properly maintained, integrated and managed.
 There is a lack of a centre of excellence in the company. As a consequence,
project prioritisation and executive’s participation in CRM has become a
daunting task. The downside of this situation is that further delays on
programme delivery are experienced since not all relevant internal
stakeholders are always readily available to sign-off deliverables.
As part of this internal assessment, identified measures and reporting tools were
also considered. Theoretically, there are 58 dimensions that cut across
marketing, finance, branches/stores. CMAT measures have been included in
individual employees KPIs. It was also found that CRM measures are not always
a prerequisite for a campaign to be launched. Some of the reporting tools that
can be found in SATEL include: cubes, spreadsheet and dashboards.
Research participants found it difficult to pinpoint the positive CRM outcomes

achieved by SATEL. However, the causal factors that have engendered these
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are discussed under these dimensions of organisational, institutional, and
customer data factors.
Since the purpose of this research is to investigate the contingency factors for
successful CRM implementation at SATEL, a detailed analysis of the
organizational, customer data as well as institutional factors that have impacted
on CRM implementation at SATEL is provided below.

organizational, institutional and customer data factors
A. Organisational Factors
As depicted in table 5-1, eight out of the ten related organizational factors were
found to have impacted on the effectiveness of SATEL’s CRM programme. They
include Vision and strategy, enterprise-wide CRM, CRM measures, operating
structure, channel mix, customer processes, training and recruitment practices,
and adequate technology.
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Table 5-1: Organisational Factors With Impact on SATEL’s CRM
Programme
Organisational factors
Themes Research findings Verbatim quotes from research participants
Vision and There is a CRM Roadmap which has been

strategy developed and shared with the business.
“ The vision is there…but we need to get people focused and on
However, it took too long to internalize the vision. board to understand what CRM is all about”
All employees have not been singing from the same

song sheet. The constant communication was
lacking or did not include all employees’ particularly
middle layers employees.
There is not a common understanding amongst of

what CRM is all about and what it can do for SATEL.
Enterprise There is tacit executive buy-in. “The enterprise wide system would have been a better approach.
wide CRM However, if you look at how to put an enterprise system into a
There is a Siloed/departmental/functional approach. company like this, you also need to balance that off versus the
time to go to market, the time when we can rule something out. If
The change from technical, sales view to business, you design for the enterprise, your design might take five years
enterprise wide is still not fully executed. It has been and to implement that, another year. Whereas if you have smaller
a difficult journey from that angle. portions of project you could get them going on the system as
long as you’ve got your enterprise view in mind, which is
A process framework is required. challenging. It is challenging. So we’re doing the best with what
we have.”
“Because of the cost of the project and the wide impact of the
project, you need executive buy-in”
“we do not have a single point of executive accountability”
“Ultimately, my job is not done if somebody in the business does

not own what we are doing. I think that’s key. It should not be a
department work. It should be the whole organization work.”
Operating The current operating structure is still based on the “We must relook at the structure of our business. We can’t
structure past model which was sales focused. implement CRM using our current sales structure”
The operating structure is not aligned with the CRM “CRM owner heads up sales and do not have much say on other
vision. issues impacting on the customer. He is driven by sales and not
service”
The job, roles and responsibilities of employees
have not been redefined to support the CRM vision.
Channel mix 33 different customer touch points were identified at “The informal channel follows the people”
SATEL (Including social media, websites, stores,
ICASA, hellopeter.com, email correspondences and “We had to be innovative to reach our informal channels in
more). remote, rural areas. The partnership with GMG is working for us.
We provide employment to Zoners and they have targets to
Multi-channel integration is critical in the execution reach”
of marketing campaigns at SATEL. Informal
channels are always included in the channel mix “We are reaching out to people to give them a job and also
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strategy. reaching out to them to give us customers” that was big “A little
while back, an assumption we made was that prepaid based
Informal channels help to reach a wide, prepaid customers aren’t online and they are. They might not to be online
customer base in remote areas. via a PC; they’re online by the phone. They are all on social
networking sites.”
Mobility is required to reach people living in remote,
impoverished communities. “There are 2 500 zoners who are brand ambassadors for SATEL.
They are contributing about 25% to our monthly sales.”
These customers are not found inside the shopping
malls; but at specific points such as Taxi ranks,
robots, shebbeens, or remote areas.
The timing of the offer/sales is important. Zoners

come from these communities. That’s why it is
easier for them to sell SATEL products in their
communities.
Social media impact on our customer engagement,

particularly with pre-paid customers.
Initially wrong assumption was made that pre-

paid/informal customers do not have access to the
internet.
Programme The CRM programme goalposts keep on shifting. “In Africa, it is an accepted habit for projects to over-run. Whereas
management elsewhere, in the western world, there is strict governance. They
There is no governance, penalties when project focus on 80% detailed planning to mitigate against challenges
over-run. that will happen on the project. (Here), we do not do detailed
planning.”
There is a lack of detailed planning.
“SA do not have the planning mode…we have the tendency of
doing things in the last minute.”
“We do not have a centre of excellence to evaluate the value-add

of projects. The analogy of a CoE is a train station where
somebody has an overall view of all trains that are coming out
and in the stations so that he/she ensures that there is no
collision.”
Change Initially, change management was difficult to “Change management is critical, specially for customer facing
management implement. People were apprehensive particularly employees.”
because of the high failure rate of past projects at
(including SATEL. “Technology vendors take African businesses for a ride.
Internal and Technology partners must understand and give us what we need.
external People are questioning the objective of the project In advanced market, it is not just about selling software; but
stakeholder after the project analysis phase. rather proper support is offered. Technology vendors are not
engagement) accountable. They are driven by Sales and not value-add to the
Technology partners did not fully engage with business… Lack of support from technology vendors. For
SATEL which led to a limited understanding of what instance, Oracle in SA does not have Technology Labs whereas
SATEL’s needs are. they have them in Europe, America, etc. By the time there is a
client engagement, they come with an understanding of the
problem.”
Customer Customer processes are defined with limited input “We can optimize processes up to a certain point. Then you need
processes from the business people. the systems enable to go the extra steps. I need end to end
customer data at the touch points. Currently, we do not have that”
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CRM The CRM success/failure has not been closely “Outcomes of CRM programme must be measured”
measures monitored
“Customer satisfaction survey is not the only measure. The
The CRM measures focus on: Channel profitability, organization needs customer commitment measures such as the
customer profitability, and customer lifetime focus Net Promoter Score (NPS), employee satisfaction score and
and there are 58 dimensions for each of the customer centric measures”
measures.
Major challenge has been to educate managers on

how to read finance.
Training and The scope of CRM training is limited. “There is limited skills for the scope of work to be done”
recruitment
practices Customer service or service quality training has not “We currently do not have the skills. The people who have been
been accentuated. hired had a “selling” mindset and are not service-driven”
Service orientation should be everybody’s job in the “The people dimension is fundamental in the CRM scenario. You
organization, not just marketing, CRM or customer will have a customer centric organization if you have employees
experience teams. Thus, it should be embodied in who are committed to customer centricity”
the company’s training and recruitment practices
(i.e. hire those individual who have demonstrated “We do not know what CRM is about. Without the knowledge of
those competencies in their current or past jobs CRM, we can’t define the skills needed”
Adequate There are lots of legacy systems, of which most of “We like to be at the leading edge of technology…The Siebel
technology them are custom made application. system that we are implementing is the best of the breed”.
Business Analysts bring requirements that do not fit “We do not match the requirements with the systems. There are
the systems. They are systems agnostic big moves now to get the existing BAs trained on Siebel…they
need to have knowledge of the system itself when they go to a
Value of the Siebel system to the business is slow to requirement gathering session.”
emerge.
Another factor that was covered by the research participants during the fieldwork
is Institution. Using DiMaggio and Powell (1983)’s isomorphism concepts, it was
assessed how SATEL became isomorphic to its normative environment when
implementing its CRM programmes. Coercive, mimetic and normative
isomorphisms were considered during the data analysis. Moreover, Hofstede’s
“confucian dynamism” was applied specially when focusing on the normative
environment at SATEL.
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B. Institutional Factors
The research results show that regulations and socio-cultural and political
environmental factors impacted on the effectiveness of CRM implementation at
SATEL.
In contrast, competitors’ activities did not affect SATEL’s CRM programme as the
company has always embraced the philosophy of being a leader in its market
and not a follower. With this in mind, SATEL would not mimic its competitors or
any other players in the South African market. As a matter of fact, SATEL has
always aimed at developing and implementing a CRM programme that
contributes to the reinforcement of its vision of being the leading mobile
communications company in emerging markets. This is illustrated in the following
comments made by one of the senior research participants:
I would like to position us as a leader. I don’t believe anybody is doing a good job right now.
There are not many companies that are doing a good job in CRM in South Africa.
The detailed findings and verbatim quotes from research participants are
illustrated in table 5-2.
Table 5-2: Institutional Factors With Impact on SATEL’s CRM Programme
Institutional factors
Themes Research findings Verbatim quotes from research

participants
Coercive motive- Research participants were almost unanimous on the “ (Our company) can afford to sell contract because
Regulations: fact that the laws that are passed protect both there are laws and regulations that assist you to get
Government laws customers and companies. your money back”
The SA Government has increased awareness of

customer service by educating customers on their
rights. “The major laws that affect us and the customers are:
National Credit Act, CPA and RICA”
The mobile telephony sector is is highly regulated. The
industry regulator is ICASA. “…Obviously PPI is going over personal information
and this is going to have an impact.”
When new Laws are passed such as RICA, the
company needs to educate customers. This impacts “ICASA gives us 14 days to resolve all complaints.
on such resources as people, system and finance However, most complaints received in our company
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ICASA has set target for complaint resolutions by are resolved within a day”
mobile communications players in the markets. A
breach of this target results in penalties.
Mimetic motives- Company has a well established brand. Although there “Financially, we have increased our market share and
Competitors’ activities is churn, customers tend to be more loyal are doing better than our competitors”
However, recent activities from emerging players such “Fighting our nearest competitors on value pack is not
as Cell C and 8ta impacts on the bottom end of this the smartest strategy. We are not going to go that
market; most of which being prepaid. route. What we are going to offer is great value over
a period of time.”
SATEL has refrained from mimicking its competitors as
it believes that it is innovation, superb customer
experience that will drive customer to its brand and
ensure that its customers do not churn.
Normative motives- SA is a fairly stable political environment. “SA gained independence after most African
Socio-cultural and economies. Some African countries earned their
political environment Unemployment is high and the legacy of the apartheid independence before SA; but there is still political
has resulted in limited availability of certain types of instability. Because of the political stability, the SA
skills. economy has been growing. It is easier to sell a
handset in a country that is stable”
The Crime rate has not stabilized. The SA culture is
quite diverse culture
The company provides jobs to zoners in the remote

areas to help reach all the layers of the communities
Highly affluent and aspirational markets
Also, there is wide percentage of people at the

bottom of the pyramid
A third factor that impacted on SATEL’s programme is customer data.
C. Customer Data Factors
Although SATEL has large volumes of customer data acquired from diverse
sources, its main challenge still lies in how the richness and goodness of the data
can be better utilized for the attainment of its CRM’s goals.
“Because of historical reasons such as siloed mentality, SATEL has had a low rate of data
adoption.”
“Only those companies with the best understanding of customers will succeed. Thus, ongoing
investment in data is critical.”
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Table 5-3: Customer Data Factors With Impact on SATEL’s CRM
Programme
Data There is a vast quantity of customer data in “Our current problem is not the availability of data but rather what we do
volumes the organization. These data are collected with the data we have”
from various sources such as contact centres,
web, social media, feedback in the branches, “A few years ago, our systems were not automated. Everything was done
zoners in townships/remote communities and manually”
retail partners. The data collected is
appended with additional data from customer “The feedback we receive from our informal channels, zoners has been
survey and also secondary sources such as invaluable”
research companies and industry reports.
The data management in the company has

improved.
Data quality Data quality at SATEL has not been “We have good data particularly from our post paid customers. The quality
(recency and mentioned as an issue. It appears that the of our data has been a key ingredient in the success of our loyalty
richness of quality of the data is good and most programme”
the importantly that the data base has lots of
database) customer details.
Data Although there is disparate information that is “Even though SATEL currently has many Legacy systems, we also have
storage, available on different company systems, there systems that tie this together. So we have for example, EDW, enterprise
security and is a system that ties all the data together. data warehouse. It will collect data from multiple systems. That data can
mining then be analyzed. So, even though you don’t have a single CRM that
capabilities The company is in the process of developing gives you that picture, you have otherwise the means to get this. We’re
the capabilities for real time marketing and not flying blind at the moment, we’re doing that analysis, but we’re doing it
campaign management. with other tools”
The data is made available to only those ‘The Siebel system works with what we call organizations so the data is
users that are allowed to view/use the data actually on one database. But the visibility is controlled according to the
organizations. So I’ve got an organization that has divisions. In those
divisions we have positions and we have employees linked to those
positions. The data is supported by organization’s structure. So I will have
one database full of all of my subscriptions but not everybody will have
access to everything. They will only see the portion of data that they are
allowed to see.”
Given this understanding of CRM implementation in the telecommunications

sector of South Africa, the focus in the next section will be on CRM
implementation in the banking sector of South Africa.
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5.3 Results From CRM Implementation at SABA
5.3.1 Overview of the “As is” CRM implementation at SABA
Based on the size of its market capitalization, SABA has been rated as one of the
top four banks in South Africa. The company has had the history of not being
agile and also of being perceived as an old fashioned institution that is reluctant
to embrace the type of change that is so much needed across all its business
aspects of people, processes and technology and systems. A total transformation
at SABA was required in order to ensure that it remains competitive. This
became a pressing issue since there have been an increasing number of smaller
banks and even of SABA’s direct competitors that became more innovative and
agile. These competitors are realizing tangible benefits from their CRM initiatives;
including increased customer awareness of their products, improved market
share, reduced attrition rates and most importantly high customer retention.
In addition to the above-mentioned market dynamics, one of the defining

moments at SABA, a moment of truth that made SABA realized that the shift to a
customer-centric had to happen swiftly, was when it was ranked far below its
direct competitors in a customer service survey conducted by an independent,
credible industry player. This low ranking was a clear indication to the leadership
team at SABA that the service level offered by the company had dropped far
below its customer expectations. As pointed out by one of the research
participants:
“The defining moment came (…) when we ranked fourth from a service perspective, from all the
four big banks. Also immediately after being ranked fourth, we went into the credit crunch time
and we realized (that) without our customers we're not going to make the money we want to
make.”
In light of these competitive, industry and internal pressures that started to affect
its margins, SABA embarked upon a CRM journey in early 2000 with the view to
attract and retain its customers; and most importantly to rally the business around
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its vision of customer centricity. Almost ten years down the line, based on the
results of this study, the business acknowledges that the CRM programme has
failed dismally and as a consequence, the programme received a “below
average” rating by the research participants. One of the research participants
who had been working on the programme since inception and has had multiple
roles along the way was overt about the limitations of the CRM programme at
SATEL:
“The CRM journey is R7 billion over budget. It is hopelessly behind target. It has not managed to
engage all the business units. So there are still people looking at it who say this is not what we
want.”
In addition to this comment, a technology user in the company commented that
“The analytics have not been integrated in a meaningful way. The CRM system is almost a
shadow system. It has not become part of the company.”
Such a low rating was observed amongst those respondents who were classified
as implementers, and also those who fulfilled both roles of strategists and
implementers. Furthermore, middle-level managers shared these opinions as
illustrated below:
“In the low income market, I have challenges with the contactability of my customer. It is great
that we have these (CRM) models and how do I realize them in my environment?”
“We have burnt money on a lot of consultants, on technical skills to get (SAP) implementation to
work…The technical forces that are driving SAP are strong and are demanding more from the
business. When will the business say no? The level of business leadership is not strong (…) SAP
is laughing all the way to the bank when they can’t deliver.”
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On the other hand, some research participants have indicated that for the past
two years, there has been a pocket of success that has mainly been driven by
the Advanced Analytics and Modeling team at SABA. This team has done some
brilliant work around the individualization of the bank’s offering to its customers
but the maturity of SABA has not always allowed this Analytics team to roll out
the work that they have tested to the entire SABA database. As one of the
respondents noted:
“The (Advanced Analytics and Modeling team) is very clear on CRM. They have the capabilities
and the business can take these capabilities to another level…but that has not happened yet.”
This view is supported by one of the research participants who also highlights the
extreme importance of addressing data management issues if the company
wants to be truly CRM focused.
“The CRM capabilities run only on a subset of customers. (SABA) has data management issues.
Up until these issues are resolved I do not think we can see the ultimate impact of CRM: the
single view of customer”.
Figure 5-2 provides a snapshot of the “As is” CRM implementation at SABA.
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Figure 5-2: “As is” CRM implementation at SABA
“As is” CRM Implementation at SABA
CRM Practices
1 There is a target operating model
SAP is in the process of implementation
CRM is driven by the technical team and not the business
Systems are fragmented
Leads that are generated are not used in the company
Segments based approach to marketing
2
Brand Measures are defined such as profit to be realised,
products sold, average revenue per customer
SABA crm implementation started off at a late
stage of the company lifecycle which has made
its implementation quite challenging in terms of
its system integrations, availability of internal
Outcomes CRM skills and other capabilities. The outcomes
3 of the CRM programme have not been
High CRM cost which has not translated into true business favourable. These can be attributed lack of
value customer data capabalities and leadership
issues. Competitive pressures have made the
company to realise that it has to be continually
innovate.
Causal factors
4
They can be categorised into:
Organisational
Institutional
Customer data
The evaluation of current CRM practices at SABA shows that there is a target
operating model which provides a high level vision of CRM. CRM accountability
and responsibility is not clearly defined. This is exemplified by the concerns
raised by both the technology and business team members. Moreover, SABA
employees define CRM as a system, and not an enterprise wide strategy where
the system is used as an enabler. This can explain why the technology team at
SABA appears to be leading the CRM strategy as opposed to the business team.
Other practices include a lack of clearly defined business management
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processes. The direct marketing department drives most of the CRM campaigns
which are mainly either product or sales driven; and not customer-focuses.
SABA has a nursery strategy for onboarding new customers. Whilst this strategy
has successfully been implemented in the company amongst new customers; it
could be more effective if the business units were to be more integrated.
This evaluation of the “As is situation” also CRM measures have not been clearly
defined and as a result of this, they are not linked to individual’s key performance
indicators. General measures related to number of customers acquired, profit
generated by branches, are being tracked by SABA. Reporting tools include
cubes, spreadsheet and dashboards.
The CRM pilot conducted by the Analytics and data modeling team has been
successful. However, Customer service is still an issue.

A. Organisational factors
Six out of the ten related organizational factors were identified by research
participants as having had a greater effect on SABA’s CRM programme. These
six factors include vision and strategy, operating structure, channel mix,
programme management, customer processes and adequate technology.
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Table 5-4: Organisational Factors With Impact on SABA’s CRM Programme

respondents
Vision and strategy SABA has embarked on a transformation “So I think if you go back to a few years ago when the
programme with the aim to get the organisation to business architecture team did a survey amongst the
focus on its customers. executive level to ascertain what do they understand
about what the bank wanted to achieve from this
Over time, a target operating model was designed. whole core banking project and the CRM, the
It encapsulates the CRM journey and the percentage of people who understood what we
capabilities for achieving the journey. wanted to achieve was terrible at that level. I think
there were about 12 out of 35.”
However, there are stark challenges; namely weak
business leadership, legacy systems and “Leadership designs the way forward and they give
misalignment amongst executives on what the you what their vision is and we follow the path.
CRM programme aims to achieve. Usually that’s what we do. So if that vision wasn’t
right, then we made some bad decisions along the
way. I think we have. I mean we definitely made
some hiccups here and there but I think ultimately we
have never compromised the customer.”
“You do need strong and I reinforce this, you’re going

to need strong leadership…courageous leadership is
what is needed in SABA”
Enterprise wide CRM There is a limited CRM sponsorship as the focus is “There is limited leadership in the CRM space”
still on a product and sales centric modes.
“ There have been many releases and we are now in
CRM has been implemented as part of a large the BR6 phase”
ERP system, on a piece meal basis starting off
with such modules as SAP HR.
Operating structure There is an operating model in place. However, “You’re dealing with a massive organization…in a
the roles, responsibilities and structure of the predominately upper echelon environment like retail
business do not support the customer-centric banking, it’s much operationalized and you’re going to
philosophy embedded in the company vision need structures and controls”.
statement
Channel mix The business is still ascertaining what is the best ‘The low income groups…that is where you build your
way to optimize its informal channels mainly used bank of tomorrow, if we’re not going to record their
by its inclusive banking customers. voices (i.e. interactions, requests, queries, etc), then
certainly from an emerging market point of view,
Some digital marketing campaigns have been we’re not listening to our customers.”
executed and the success rate has been high.
The self service channel usage rate is still low

amongst customers.
Programme CRM was a subcomponent of the enterprise “The whole management, the sizing, the whole
management resource planning; Which explains the various scoping of this project has been wrong from the start”
releases that have occurred.
“When we started off with SAP, it kind of was a
The program methodology was custom made and custom, specially made methodology for the project.
not understood by SABA project manager, analyst, The problem with that is your project managers don’t
etc. understand it. Your business analyst doesn’t
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There is not a standard programme management understand it…it was really customized specifically
methodology that is used and understood by all
for the program, which didn’t work out well because
no one knew what they were supposed to do”
“Firstly and most importantly, you have to have a sit

down scope. You need to know exactly what you
want to do. So if you don’t know exactly what you
want, you’re not going to get it.”
Change management Change management has been weak to non- “Change has to be a constant in the
existent. There is not enough understanding organisation…you have to speak it all the time, This is
amongst the users on the benefits of CRM and not about losing your job. That’s not what change is
why/how it would be implemented, although a about.”
diverse range of internal media such as internal
television, newsletters, intranet and more have “Bluewave, an internal television program is used
been used as part of the change management extensively to communicate changes in the
program organisation.”
Customer processes Lead management processes are defined. Leads “I don’t think that more than ten people in the
are also generated but not used for customer company know that NBA dumps up to 70,000 leads a
acquisitions or retentions. day into our direct marketing databases, and aren't
used.”
All customer processes have not been
documented
CRM measures The research participants realize the importance of “The good service isn't the end in itself. So if your
defining how CRM success looks like. According to customer relationship – CRM system isn't reducing
them, it should include amongst other increase in your attrition, and increasing your sales, those are the
customer satisfaction, reduced customer key indicators. You can give me every customer
complaints, increase in upsell and cross sell satisfaction survey saying you're so wonderful and
everything else, if it’s not hitting your bottom line
However current measures have not been adopted through those two things…(then, it is not worth it).”
across the business.
Training and The training is developed and facilitated by the “I think what is absolutely essential is that you have
recruitment practices people lacking the technical skills. CRM education somebody with social science skills that can interpret the
is also required in the business data, understand the products, understand what needs to
be filled, somebody who understands the community, the
The set of skills identified as critical by the bank, and how the bank approaches the community
research participants include social science, data based on the data that’s fed through to (him/her).”
management, and advanced process analysis,
social science, advanced statistical skills. Because
of the staff turnover rate, these skills are not
always readily available in the organisation.
Adequate technology The legacy systems coupled with a lack of “We are building a new bank and the core banking
understanding of what CRM can do for the transformation is all about this. It’s using this new
business have made its implementation costly, software to build this new platform and this platform is
longer and overall ineffective. going to be looking at a way to manage our customer
relationships”
The selection process of the IT vendor was
primarily driven by the technology team with “ If I had to build a new bank, I will make CRM the only
limited involvement from the business team. thing”
Not every historical data about the customer based “We have a lot of SAP problems. The flow is not correct”
on its interactions with the company is captured
onto a single platform.
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Transitioning from the organizational factors to the institutional factors, it was
observed that out of the three institutional motives for CRM implementation at
SABA, mimetic motives greatly impacted on SABA’s CRM implementation.
The results show that coercive motives did not affect CRM implementation at
SABA. This can be explained by the fact that SABA views all laws and
regulations as part of good business practices. These principles are embedded
into SABA’s philosophy of doing business. Likewise, although the respondents
acknowledged that a stable political environment is always conducive to good
business, they did believe that CRM initiatives must be cognizant of the historical
background their communities. As a result of this, organizations that implement
CRM must incorporate a “societal flair” in their approach as commented by some
of research participants. This need is even greater if the organization wants to
attract low income and previously disadvantaged market segments.
Mimetic motives are institutional factors with the highest impact on CRM
implementation at SABA. Mimetic motives in the banking industry are one of the
drivers of CRM implementation at SABA. In this research study, SABA has
shown to be a follower particularly when it comes to the adoption of new social
media such as twitter and other media platforms as part of its CRM
implementation progamme. This mimetic approach to CRM had a positive impact
on SABA’s customer acquisition and retention efforts.
Another imitative behaviour regarding the adoption of CRM practices by SABA is

concerned with the long opening hours. As retailers in South Africa extend their
opening hours to respond to customers’ demands of more convenience, SABA
has viewed this approach as appropriate and with the potential of bringing more
feet into its branches. Consequently, it has not just extended its opening hours;
but in some major metropolitan areas of South Africa, it also caters to the needs
of its customers on Sundays by providing them with face to face interactions and
attending to their banking needs.
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Table 5-5 presents the findings on the institutional factors that may have
impacted on SABA’s CRM programme.
Table 5-5: Institutional Factors with Impact on SABA’s CRM Programme
Institutional Factors
Regulatory The National Credit Act and Consumer Protect “All these laws are good because they encourage good
Act have affected how the company promotes its business practices.”
motives: customers. However the research participants
acknowledge that SABA runs with the “Our customers have become more vocal as they are more
Regulations:
understanding of not being in a position to annoy informed. Legislation has forced them to become more
Government the customer. informed and aware.”
laws/Industry SABA has to request customers’ consent before “CPA, so if you unsubscribe from all electronic
promoting its products to its customer base. communications then you’re off the database, and you don’t
regulations get to email.”
Mimetic motives: Direct competitors activities are monitored ‘Our competitors is the reason why our CEO when on
closely. Their external marketing activities have Twitter.”
Competitors’ forced SABA on how to engage with its
customers. “Our competitor (y) was the first one to go on twitter and
activities
everyone was just following him”
Competitors ‘activities have reduced SABA’s
market share. “The front end of our competitors is quite slick(…) but they
have other challenges too”
Retailers way of doing business such as long
store opening hours have now been adopted by
the company in some of its branches
Normatives: Socio- The political landscape together with languages “I think ...cultural diversity…our political background, that is
did not greatly affect how SABA engages with its important and it stills plays a huge factor today. I have to
cultural and current and potential customers have a bit of a community dynamic in my (CRM) approach. I
can't just come here and put out products. It's got to be
political
relevant. It's got to talk to the target market and it's got to
environment have a bit of societal flair.”
The third factor that was identified is concerned with customer data.
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Customer data quality, data storage, security and data mining as well as SABA’s
ability to manage its large volumes of data have impacted on the effectiveness of
its CRM implementation programme.
Table 5-6: Customer Data Factors with Impact on SABA’s CRM Programme
Data quality There is voluminous, non uniform data which at “There’s too much data in the bank. It’s taking too long to
(recency and time prevents timely reporting and the move the data into our data warehouse. Like, some days our
richness of the generation of customer insights. Moreover, the batches fall over. So this doesn’t affect customers, but it
data) velocity of data has increased significantly and affects the people who do the reporting – in order to drive
data management has become complicated performance as well, you have to get the reporting ou.”t
due to data coming from multiple sources.
“The challenge is that 50% of our book is split between “yes”
This large customer database has not been and “no” to marketing.”
fully utilised due to regulatory restrictions. In
reality, the SABA database required for
marketing purposes has shrunk to half its size
due to legislation which requires customer
consent to campaigns.
Data storage and Quality of data is good for new data which “The delivery is high because they’re new clients, and this is
mining capabilities makes the delivery of information to customers an actual valid address that they gave a month ago.”
very high.
“The E billing for the bank is about 75 or 80 percent, which is
Information that gets undelivered either via good for the banking sector.”
electronic or print media is mainly due to poor
data capture. “We end up migrating two customers over four, where there’s
actually only one person. I mean, personally, I had about
There are lots of duplicated records in the seven or eight customer records – for me, for one person.
company database. And you have to sit with the guys. And then they have to
combine all of these into only one person. And we’ve got a lot
Customers are not flagged on the systems on
of that.”
the basis of their preferences on how they want
to be communicated to and for which products “It’s a big job to initiate (preference centres). To maintain, it
or services. takes a bit of work. But the actual technical kind of makeup is
not that hard. The banks implementing SAP at the moment,
huge, big SAP implementation where all custom preferences
are going to be held there as well.”
The formatting of data as well as its location is “I’d almost say your biggest challenge is migrating the data that
a challenge the company is faced with. you’ve got from all of these different old systems. We had so
many isolated systems that we used to do the different
The ability to mine data to generate new products on, the different customer files, the different sales
insights for the CRM programme is key. systems, different workflow systems, CRM systems. We had to
combine all of these systems and get integrated into this one-
step system, which, I think, was the most difficult thing. We’re
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still migrating data over. And we’re finding that there’s a lot of
data missing.”
“I think you need to use analytics to drive your understanding

of the customer. And when I say analytics, it’s a mixture of data
driven analytics as well as data driven but more survey driven.
So not just your pure database data.”
Based on the above results, it can be concluded that data lies at the heart of a
successful CRM programme for SABA. Most of its CRM impediments beyond
organizational factors are undoubtedly linked to its inability to manage its
voluminous data, store such data and also to apply the required data mining skills
to create individualized customer offerings for its entire customer base.
6.4 Summary and Key Insights
Despite the fact that both SATEL and SABA operate in the same country, there
appears to be stark differences in their CRM practices.
First, SATEL CRM programme received a better rating than SABA’s. This may
largely be attributed to the dynamic changes taking place in the mobile telephony
sector which has forced this mobile service provider to be at the forefront of
innovation. This result is sound evidence that the industry maturity level plays a
role in determining the potential failure and success rate of CRM within
companies. Second, the mimetic motives for CRM implementation were not
supported at SATEL whilst at SABA’s the focus was on replicating what the
nearest competitor was doing in the market to attract customers. Third, a major
problem at SABA was the end-to-end management of its programme which was
not on par with the standard levels as there were large discrepancies amongst
the project team; namely misalignment of the adopted project management
methodologies, the programme is run by the technical team with limited
involvement from the business, just to name a few issues. Whereas at SATEL,
although the management of the CRM programme did not have the highest rating
out of the organizational factors that were identified, the CRM accountability
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rested with someone from the business side. Nevertheless, this resource had
more of a sales than a customer-centric view when making decisions.
Despite these differences there were similarities in CRM practices between these
two companies. They range from the level of support required to effectively
manage their CRM programs, to the issue of large volume of data as well as the
availability of marketing, analytical and sound programme management skills in
the company. In addition to this, both companies have found it necessary to
include the informal channels as part of their channel mixes.
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CHAPTER 6: CASE STUDY RESULTS
Focus on a Bank (NIBA) and Mobile Telephony Company (NITEL)

in Nigeria
6.1 Introduction
Similar to Chapter 5, this chapter presents the results from within case analyses
of CRM implementation in the banking and mobile telephony sectors, having as a
main differentiator the country of analysis, Nigeria. The unit of analysis remains
the CRM programme. In sections 6.2 and 6.3, an overview of the “As is” CRM
implementation situation is described by concentrating on each company’s
current CRM practices, identified CRM measures, outcomes of CRM
implementation and causal factors of such outcomes. Then, detailed research
findings, along the three dimensions of organizational, customer data and
institutional factors as well as the verbatim quotes from research participants are
presented.
In the last section of this chapter, section 6.4, a summary of the research findings
are presented as well as key insights drawn from the mobile and banking
industries within Nigeria.
6.2 Results from CRM Implementation at NITEL
6.2.1 Overview of the “As is” CRM implementation at NITEL
As one of the late entrants and smallest players in the Nigerian mobile
telecommunications industry, NITEL was initially faced with what was perceived
as insurmountable challenges when it first entered the Nigerian market in
October 2008. These challenges included amongst others, stiff competition from
existing players with strong brand equity and robust financial muscles, negative
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perceptions associated with NITEL’s mother brand in international markets,
unstable operating environment with specific reference to the political unrests in
the northern part of Nigeria as well as the notoriously high cost of doing business
in Nigeria. These high costs are mainly related to indirect business costs such as
the need to purchase generators and diesel in order to curve the power outages.
These power outages have become an accepted norm in Nigeria and thus any
player that wants to capture a sizeable part of this market has to incur the
necessary costs in order to continue with the provision of its services to the
targeted customers. Otherwise, these will negatively impact on the company’s
ability to deliver its mobile and communications services to its customers. One of
the research participants identified these costs as inhibitors to businesses in
Nigeria:
“Have you noticed that there is a lot of power outages in Nigeria?...Now if power goes off, there’s
service distribution (issues) for the area. So what do we do? We put two generators per base
station. We fuel it with diesel. Basically, the cost of providing this service goes up, which also
reflects in what the subscribers are paying. Beyond the cost, it takes a while for it (the service) to
be fixed. So these are the things that are really inhibiting operators from getting to customers.”
Another research participant that was interviewed offered similar views:
Power is the main problem in (this) industry. If we can have 50% more power than (what) we
have right now, I think our problems will be half solved in the industry. The amount of money that
we spend in the month I heard is a figure of 8 billion naira for the whole industry is quite a lot of
money. It’s huge!
Unphased by these challenges, NITEL had a clearly defined business model. It

set up its Nigerian operation with a single-minded purpose: customer-centricity.
In support of this customer-centricity approach, one of the research participants
asserted that:
“Your customers are not transactions. They are not numbers. Your customers are human beings
who have emotions and who behave in certain ways based on their emotions. So if you can find
out what is value for them, what their emotions are, if you can manage this, you’ll have more loyal
customers.”
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It is this vision of emotionally connecting with customers in order to achieve
customer delight and deliver superb customer experience across all the touch
points that led to the birth of NITEL’s customer centricity program.
NITEL embarked upon the implementation of its CRM programme just 2 years
after establishing its presence in the Nigerian market. Given its relatively new
position in the Nigerian market when it launched its CRM programme, the
company had to ensure that through its CRM programme it could position itself
as an innovator. Consequently, driving innovation across its products and service
offerings was the clear path towards sustainable customer acquisition and
retention; and ultimately, for increased market share for NITEL. Research
participants lauded the types of innovation NITEL was able to implement:
“When we came, we gave people things that they had never heard of before. Things like home-
zone. For example: if you identify your office as your home-zone, any calls you will be making
from that place will be the cheapest.”
“The only way we can expand is keep on innovating. That’s one thing NITEL is known for. For
instance, we came with the idea of updating your facebook status from « N-cell phone »”
“(Our) strategy has been to be number one in innovation, because innovation will get you ahead
of every other player in the market.”
Beyond innovation, the success of NITEL’s CRM programme has been attributed
to its strong leadership team. For example, one of the research participants noted
that:
"The success story of our currently growing customer centricity program is based on the buy-in of
our CEO. He understands customer issues. He owns the (programme). He gives this
(programme) financial support. He gives it every necessary support. He encourages the
consultants and everyone. He understands what customer centricity is about"
This view was echoed by other research participants. They acknowledged that
NITEL’s CRM programme has received lots of support from their CEO and other
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departmental heads. There is a clearly defined level of accountability between
such departments as customer care and customer experience at NITEL.
Everybody in the company understands the vision and works with the objective to
realize this vision.
In addition to this, the effective implementation of CRM programme at NITEL has

generated tangible results as illustrated in these remarks from the Middle and
Senior Management teams at NITEL:
“The company has over 12 million customers as we speak right now”
“Our growth rate has almost tripled since we implemented our customer centricity program”
“80% of customer related issues that are escalated (to the contact centre) get resolved
immediately”.
In reality, NITEL exponentially increased its customer base from six million in
2010 to over 14.3 million at the end of September 2012. It has now set up a
target of reaching 20 million customers at the end of the year 2013 ("(NITEL) to
invest USD400m in 2013, targets 20m subs," 2012). Additional achievements are
in the areas of total increase in sales and overall profit margins generated. In less
than four years, NITEL acquired 13 per cent of Nigeria’s mobile
telecommunications market share and reported net revenue of $8.4 billion as at
the end of March 2012 ("(NITEL) Nigeria sets new four year target," 2012).
The success of NITEL’s CRM programme was also acknowledged in the industry
when it received in November 2012 two awards from the Nigerian
Communications Commission (NCC), the official regulator of the ICT industry in
Nigeria. The awards were for Excellent Service and Effective collaboration with
the Consumer Bureau Service. It is understood from these awards that NITEL
has consistently exceeded the targets set by the industry regulator in terms of
number of call attempts made by the consumer to its contact centre and
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maximum ring before a connection is made to its Interactive Voice Response
(IVR), which were far below the target of “5 times”. Another measure used by the
regulator to monitor the quality of the service offered by the mobile service
providers is the queuing time. On this front, NITEL performed well against the
target of “no more than 5 minutes” for queuing time ("(NITEL) wins award for
excellent service and customer care," 2012).
With these upbeat results, the research participants were unanimous that the
CRM programme at NITEL exceeded anticipated targets. This explains the
overall “good” rating that they attributed to the effectiveness of their CRM
programme. Figure 6-1 provides a snapshot view of the “As is” CRM
implementation at NITEL, including CRM practices at NITEL as well as identified
CRM measures, outcomes and causal factors of these outcomes
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Figure 6-1: “As is” CRM Implementation at NITEL
“As is” CRM Implementation at NITEL
CRM Practices
1 Total buy-in from the CEO who understands CRM and has
invested the time and other financial resources in the
programme
Innovation across all products and services offerings
Customer insights drive decision-making at NITEL.. This
reinforces its customer-centric positioning
2
Number of customers acquired
Net profit generated
Although a late entrant in the Nigerian Mobile
First call resolution
telephony industry, NITEL’s customer
Average call handling time
centricity programme has been rated as good.
Queuing time
The effectiveness of its programme can be
seen in the outcomes achieved; namely
Outcomes improved market share, profit and increase in
3 Improved customer service the number of new customers. These positive
Increased market share to 13% results have made the leadership bullish about
Acquired over 7 million new customers within 2 years 2013. They have set a target of having a
Product innovation: e.g easywallet, home zone, easy start customer base of 20 million by the end of
and easy click- just to name a few. 2013.
Improved average call handling time
Queuing time has been reduced to less than 5 minutes
Causal factors
4
Organisational
Institutional
Customer data
The CRM current situational analysis at NITEL reveals that NITEL has a clearly
defined customer centricity program that is fully supported by its leadership team.
This leadership team has created an internal culture of customer centricity and
innovation and has rallied every employee behind the CRM vision. Moreover, the
roles and responsibilities of each employee and department are clear and are
linked to the company key performance indicators. In its interactions with its
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customers, NITEL uses the languages understood by Nigerian in its
communications with its target market (e.g. Pidgin English). CRM at NITEL is
based on customer insights. Its market segments include: Prestige, Mass and
Youth Segments. For its Youth segment, it has implemented effective strategies
that have helped it capture this important segment of the market which represent
60% of the Nigerian population.
CRM measures are important at NITEL as all customer-related activities are

linked to metrics. These metrics are discussed and understood by all employees.
Some of the metrics used at NITEL incorporate queuing time, number of
customers acquired, first call resolution, market share, net promoter score and
profits generated. There are also qualitative measures including customer
satisfaction level and feedback from surveys.
The outcomes of NITEL’s CRM initiatives have been satisfactory. For example,
NITEL improved its market share to 13 percent at the end of September 2012. It
acquired an additional 7 million customers within two years (as at the end of
September 2012). NITEL has exceeded the measures set up by the Nigerian
Communications Commission. It also received several customer service awards
from the ICT regulator, the Nigerian Communication Commission (NCC). Its
sales generated and profit margins achieved have increase since the roll-out of
its customer centricity program. The main causal factors behind this success are
discussed in the next section.
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6.2.2 Presenting CRM results from NITEL under the three dimensions of
According to the feedback received from the research participants, there are six
organizational factors that greatly impacted on NITEL’s CRM programme
effectiveness namely: Vision and Strategy, CRM measures, Change
management, training and recruitment practices, the operating structure,
technology and systems, and the channel mix.
Table 6-1: Organisational Factors With Impact on NITEL’s CRM Programme

participants
Vision and The customer centricity program at NITEL aims to deliver a “Our core focus is the customer. Everything we do is
strategy superb customer experience. The programme is customer centric. We are not chasing numbers like
championed by the CEO who has also rallied all his team others. We are in the business of giving service of
members behind the vision of NITEL being a customer quality. We know we’ll get paid back.”
centric company.
“The success story of our currently growing
The CEO walks the talk and provides all the necessary customer centricity program is based on the buy-in
support that assist in the realization of the CRM vision. of our CEO. He understands customer issues. He
owns the (programme). He gives this (programme)
financial support. He gives it every necessary
support. He encourages the consultants and
everyone. He understands what customer centricity
is about.”
“No customer centricity program can survive if you

don’t have the buying from your top management.”
Enterprise wide The various departments ranging from customer insights, “Everybody knows about this customer centric
CRM business intelligence, marketing, channels, finance and philosophy.”
contact centre work hand in hand in developing and
implementing customer centric solutions. “Any company that can delight the customers they
have, will be in business for as long as they can
The customer centricity program has been communicated sustain the interest of the customer. The upside is
to and bought into by all. clear once you have happy, loyal customers.
Customer centricity is key.”
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Operating The CRM organization has at its top level the CEO who is “Our CEO, along with the Head of Customer Care
structure supported by the Head of customer care and customer and Experience drive our CRM program.”
experience. Each of these departments understands their
functions and what is required to deliver on their mandates.
Channel mix NITEL has used a combination of above, below and “We apply the right marketing mix: TV commercials,
channels through the line channels to reach its customer base. outdoor media, etc.”
A bulk of the communication is delivered via SMSes.
In some instances, outdoor media has also been used to

raise the profile of NITEL as well as its product range in the
community.
Programme Due to the size of the business, the customer centricity “The best time to launch the customer centricity
management program has been integrated into the business and is program is at the early stage of the company life
spearheaded by the CEO who is also ultimately cycle.”
responsible for the successfully delivery of the program.
Change The change management journey at NITEL was not “Culture of the organization has to support the
management arduous primarily due to the fact that NITEL was new in the customer centric program.”
market and customer centricity was embodied in the
company philosophy. So, employees at NITEL saw CRM
not as a new initiative but rather a way of the company
fulfilling its mission.
Change management processes included clearly defined

vehicles set out to convey to all stakeholders the rationale
of the customer centricity program. In addition to this, there
were ongoing update sessions led by the CEO of the
company.
The culture of NITEL is that of flexible, innovative company

that readily embraces change.
Customer Customer-centric processes and sub-processes have been “We have key processes that are monitored to
processes defined, designed and documented. These processes are ensure that they are fit for purpose. And then we
categorized into four: have processes that support those processes.”
 Innovation “We have some strategic processes that are geared

towards achieving customer satisfaction/good
 Quality quality. Yes we do have processes for our four key
focus areas: Innovation, quality, customer
 Customer relationship relationship, and network resilience.”
 Network resilience
CRM measures NITEL has a set of measures in place. Some of these “The key KPIs that we measure, on a regular basis,
measures are aligned with the NCC requirements. These is the margin. We ensure that our margin doesn’t go
measures range from: customer service to sales and new beyond what we can’t sustain.”
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product development. “Another impact is the customer positive feedback
that we get, words of mouth recommendations.
It also uses the customer satisfaction index to monitor its They compare us with seniors that have been in the
customer satisfaction level. market for a longer time. Our brand has
strengthened. Where we stand in the mind of the
customer has been our major win.”
“We look at the customer satisfaction index with the

standards used around the world. Based on that
result, we know how we are doing.”
Training and NITEL has hired local people with the understanding of the “We recruit as much local content as we could to
recruitment Nigerian consumers. Also, quite a significant number of ensure that there is a lot of buying into the business”
practices those who hold middle management positions had held
positions in the ICT industry. They bring in not just the “Basically what we do is running (training) initiative
knowledge of the local environment; but also that of the on improving (service) quality and processes.”
industry.
“All our specialists are cross-functional. You liase
The core skills that helped deliver on the company’s vision with every part of the business. You need to have a
was a service culture that was embodied in everything that cross-functional mindset. You need to understand
was done in the company. Moreover, cross-functional skills systems, product and services, have CRM
were also necessary. technology skill in the business. You have to be
innovative, creative. You have to be committed. To
In partnership with the Lagos Business School, NITEL has believe in what you believe in. Those are the core
established a customer service centre. The aim of this skills of CRM and CEM.”
centre is to disseminate CS knowledge through research,
seminar and conferences. “We have a very functional training team. We have
experienced trainers. We have a training program
Trainers are experienced and the training program is that is derived from each individual KPI. Remember
derived from each employee’s KPI that KPI is also derived from our departmental KPI.”
Adequate The current Oracle technology allows for a 360 degree “If you go to the call center just from a single view,
technology view of the customer across all his interactions with NITEL. they (call centre agents) are able to take a
subscriber call and answer every question.”
Institutional factors are presented in the table below along the dimensions of
coercive, mimetic and normative motives that impacted on CRM implementation
at NITEL.
Historically known as a country with weak institutions (Transparency, 2012), the

Nigerian government has gone through a process of revitalizing its institutions
and making them more credible in the eyes of the communities they serve. An
example of such an institution is the Nigerian Communications Commission
(NCC), the ICT regulator in Nigeria. NCC’s policies and regulatory framework
have been welcomed by the mobile service operators. NCC has worked in
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tandem with its stakeholders to develop policies that protect consumers’ rights
whilst at the same time enabling the mobile service providers to deliver on their
excellent customer service vision.
Whilst NCC’s policies have been well received, the service providers lamented
the numerous taxes that they have to pay to conduct business in Nigeria.
Commenting on the tax issues, a respondent pointed out:
“We have multiple taxation issues, which is probably the second biggest problem we have after
power. The taxation problems we get... We pay taxes to the federal government, the state
government, and the local government. We have eight little agencies charging for the same thing”
Other factors that impacted on NITEL’s CRM program include socio-cultural

factors such as languages and overall customers’ expectations for quality service
level once they have paid for such a service. This high expectation service quality
level runs across all the customer segments; namely from low to high value
customers.
Competitor’s activities had little impact on NITEL’s customer centricity program

due to NITEL’s culture of innovation, speed of service delivery, extensive product
range and clearly defined business model.
Table 6-2: Institutional Factors with Impact on NITEL’s CRM Programme
participants
Regulatory motives: Due to NCC’s collaboration with mobile service “We do have vandalism problems although. This
providers, new policies that were put in place by is a general industry problem. Community
Regulations: the regulators were not viewed as coercive but relations issues are regular.”
rather as a normal way of doing business.
Government
“We have multiple taxation issues, which is
laws/Industry regulations However, government taxes have impacted on probably the second biggest problem we have
NITEL’s customer centricity program as the high after power. The taxation problems we get... We
taxes paid by the service providers have been pay taxes to the federal government, the state
passed on to the consumer. government, and the local governments.”
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Mimetic motives: As the latest entrant in the market, NITEL ‘(Our competitors) right now are bleeding heavily.
differentiated itself by focusing on innovation and They can’t do the things that we can do. They
Competitors’ activities consequently, staying away from mimicking its can’t offer the kind of bonuses, rebates we can
offer. Because of the fact that they will bleed and
competitors. NITEL’s customer activities have
they won’t be able to survive. But because of the
been difficult to replicate despite the fact that these fact that we are a much younger, much vibrant,
existing players have had to up their games with you know, a small organization – which we are
the view to maintain their market share. more or less now part of the big players. We are
able to... We can afford to offer such value-added
services, which in the long run, in the mid-term we
will able to get a lot of value from it.”
Normative: Socio- Service expectation levels are very high “The Nigerian customer is really complex. I think
regardless of the value band of the customer. that comes from our economic situation where it
cultural and political is very hard for you to come across money. When
Customers like to show their wealth by purchasing it comes to service, they think it’s their right to get
environment
more than a handset. it as long as they have paid for it. As long as they
have paid for it, you have to provide them with the
Vandalism negatively impact on service delivery in good service.”
some communities. “Nigerians are very happy people. They are
spenders. They are loud. They have a lot of ego.
Language considerations are critical when Nothing gets them down. It’s normal to see one
communicating with some segments of the person having more than one handset.”
population. “We have a lot of vandalism, you know. You just
go to a site one day and generators are missing
Members of the communities like to see service … fibre cables get stolen”
providers that are involved in their community We found that the education in the northern
development activities. region is lower than in the southern part of
Nigeria. Lots of them don’t go to school. That’s
why you have to make the advertisement very
simple for them to understand; everything is made
in their local language. Meanwhile, in the
southern region you can do ads in English and
they will still understand”
“If we communicate in people’s language it’s
good. It improves the customer relationship
experience”
Another factor that impacted on NITEL’s programme is its customer data.
Although NITEL’s CRM program has delivered positive results for its
stakeholders, a focus area in the coming months within the organization is the
development of data mining capabilities that will allow the enterprise to offer real-
time individualized service and product offerings to its customer base.
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The results below demonstrate that NITEL’s customer data issues go beyond the
accessibility of data. They centred on how the company can best manage the
large volumes of data acquired to gain the competitive edge.
Table 6-3: Customer Data Factors with Impact on NITEL’s CRM Programme
participants
Data volumes and Just as many other companies in the “For telecoms, the challenge is not about the
telecommunications industry, NITEL has lots of data challenge of whether there is data. The challenge is
Velocity he can assess. However, the real difference lies in how to transform that information into useful insights.”
turning this data into useful insights that can be used
for decision-making in the company.
Data quality The quality of the data is generally good as the data is “For every customer that calls, we have a customer
updated daily. satisfaction survey that we run. Our data is gathered
(recency and on a daily basis.”
The new SIM registration process initiated by the
richness of the
NCC, national telecom regulator allowed NITEL to
data) collect and update its customer data. However, the
research participants commented that the data about
each customer could be enhanced by adding new
variables beyond the ones required for the sim
registration. Such additional variables could be linked
to customer preferences- products, promotional
channels, time of promotions, and so forth.
Data storage and NITEL has the required intelligence to mine its “Every survey, every customers form, as far as I am
concern is useless if you don’t have the intelligence to
mining capabilities customer data. bring out the insight from it. You have to turn them
from volume to value. Valuable insight that tells you,
this is what your customers want.”
Shifting away from the mobile telecommunications industry, the next section
presents the results from CRM implementation at a Nigerian bank.
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6.3 Results from CRM Implementation at NIBA
6.3.1 Overview of the “As is” CRM implementation at NIBA
The banking reforms that started off in Nigeria in 2004 achieved many goals;
amongst which “the consolidation of banks through mergers and acquisitions
from a total of 89 banks to 25 banks”, the recapitalization of the larger banks and
finally an increased monitoring of the quality of service delivery levels of the
banking service providers to their communities by the Central Bank of Nigeria
(CBN) (Lamido, 2012, p. 5). This monitoring was made effective with the
establishment of the Consumer and Financial Protection Unit within CBN, a
platform that handles consumer complaints about their dissatisfaction with their
banking service providers (Lamido, 2012) .
Following on these reforms, most banks, if not all the banks in Nigeria had to re-
focus their efforts on achieving superior performance. Despite its fairly stable
position and strong brand equity in Nigeria, NIBA, one of the highly rated banks
in Nigeria, with a footprint across major cities of Nigeria and a large customer
database, realized that a journey that did not place its customers at the centre of
its business activities will be devoid of the sheer superior performance that its
stakeholders were expecting the company to deliver. Armed with this
understanding of its business main priority area, NIBA concentrated on building
and strengthening its relationship with its customers. This was apparent in the
launch of its customer relationship management program seven years ago.
However, due to delayed executive buy-in and lack of internal expertise, the
program only gained momentum three years ago as noted by one of the research
respondents:
“Lack of management buy-in at the initial stage and lack of expertise for the implementation
delayed the implementation of our CRM program.”
Throughout its CRM journey, NIBA encountered a set of challenges that were
related to the adequacy of its Information technology systems and the culture
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change that imposed itself on the company and its staff members. The research
participants have summarized these as follows:
“The implementation was delayed because our organization used different applications that were
required to interface with the CRM application. Building up the interface was a challenge.”
“Staff members have come to realize that proper implementation of the CRM program is central
to the bank’s business.”
Despite a rough start with its CRM journey, NIBA has turned the challenges it
was facing into real business opportunities. Specifically, the company has
mobilized all the necessary resources to improve on the delivery of its CRM
efforts. These positive efforts have been translated into tangible business results.
Today, NIBA has achieved a good financial performance. For the period ending
September 2012, NIBA announced that it has realised a profit before tax of
N75.22 billion. This reflects a 50 per cent increase over the N50.13 billion that
was recorded for the same period during the previous year ("(NIBA) records N75
billion in 9 months," 2012). According to one of the bank’s Senior Managers, his
company was able to achieve such a robust growth thanks to the various
strategies that it employed such as:
“Developing deeper and broader relationship with all clients and striving to understand their
individual and industry peculiarities with a view to formulating specific solutions for each segment
of the customer base.”
“Optimally expanding the bank’s operations by adding new distribution channels and entering
into new markets where opportunities exist.”
“Maintaining the bank’s position as a leading service provider in Nigeria, while expanding its
operations internationally in West Africa and the financial capitals of the world.”
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“Striving to be a leading service provider in Nigeria by continuing to build on longstanding
relationships, capabilities and the strength of the (NIBA) brand and reputation.”
“Continually enhancing the bank’s processes and systems to deliver new capabilities and
improve operational efficiencies and achieve economies of scale.”
("NIBA: The success story of a Nigerian bank," 2012)
In light of the above comments, it is not surprising why the research participants
rated NIBA’s CRM program as “good”. Explaining the rationale behind the rating
attributed to NIBA’s CRM program, one of the research participants commented
that:
“The CRM implementation was successful as the organization began to feel its impact in the
areas of customer satisfaction which translated into increased revenues and cost reduction for
the organization.”
Although these views are shared by all research participants, there is also
recognition that there are still rooms for improvement as pointed out by one of the
respondents:
“Our CRM programme is good because it has substantially met our objectives though there are
still rooms for improvements.”
To expand on NITEL’s CRM implementation results, further details are provided

below on its CRM practices, measures as well as outcomes and causal factors of
such outcomes.
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Figure 6-2: “As is” CRM Implementation at NIBA
Viewing CRM as a source of sustainable competitive advantage, NIBA’s CRM

model places the customer at the centre of its business activities. To ensure that
the customer culture is embedded in the organization, ongoing training on service
orientation is undertaken by all employees, not just customer facing employees.
To support this customer-centric view, NIBA established a twenty four hours and
seven days a week helpdesk to allow customers to channel their queries or
complaints to this central platform. All queries are resolved within a maximum
time period of 48 hours. Technology has been a key enabler in delivering NIBA’s
customer solutions. The leadership team’s support for the CRM programme has
increased over time. The company is structured around key account officers who
are responsible for speedily attending to customers. This structure supports its
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customer-centric philosophy. Also, through extensive market research NIBA has
been able to improve its customer processes and its overall CRM program.
Some of the CRM measures during the “As is” assessment include: Number of
customers acquired, profits generated, average query or complaints handling
time, number of products held with the bank, customer satisfaction level,
operational efficiency, customer retention ratio and cost reduction.
NIBA’s CRM program has been instrumental in the achievement of the following
outcomes:
 Profits generated amounted to N75.22 billion as at October 2012, a 50%
increase over the past year.
 Improved customer satisfaction.
 Reduced costs of servicing the customer.
 Improved customer query and complaints handling time.
 High customer retention ratio.
6.3.2 Presenting CRM Results from NIBA under the three dimensions of
Inarguably, seven key factors were identified by research participants as having
affected the effectiveness of the CRM programme implementation at NIBA. They
consisted of:
 Vision and strategy
 Adequate Technology/systems
 Customer processes
 Operating structure
 Training and recruitment practices
 Change management
 CRM measures
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The remaining factors had a minimal impact on the company’s ability to deliver a
successful CRM program.
Table 6-4: Organisational Factors with Impact on NIBA’s CRM Programme

participants
Vision and The CRM vision and strategy was not well articulated “Lack of management buy-in at the initial stage and lack
strategy in the early stage of the CRM programme. This of expertise for the implementation delayed the
negatively affected buy-in and to some extent delayed implementation of our CRM program.”
the company from reaping the rewards from the
programme. Once the buy-in was obtained from the
executive team, the CRM program starts to get
traction from other parts of the business. Everybody in “The strong support of management greatly enhanced
the company knew that without a customer-centric the CRM programme.”
culture, the business will be short of meeting its
financial targets.
Enterprise wide Employees work hand in hand to ensure that “A critical factor of our CRM program was to get the
CRM complaint resolutions takes place in a speedily overall concept of the CRM programme to all members
manner. Also, the operating structure of NIBA of staff.”
encourages cross-functional interaction.
Operating The operating structure is aligned with the CRM vision “The customer service officers follow the organization
structure of delivering superb customer experience. policy on customer service.”
Consequently employees performing their day to day
functions know how their activities affect customers
and also their individual key performance indicators
which have been derived from the business targets.
Multiple With over 500 branches across Nigeria, NIBA is easily accessible to its customer base. Moreover, the company
channel uses electronic media such as the internet to disseminate key information to its customers
integration
Programme The research participants were of the opining that the “The CRM process included analytical, operational and
management CRM program was well managed at NIBA. Where collaborative CRM.”
there were areas of concerns, these were raised with
the leadership and then address accordingly.
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Change The change management process was well handled “Staff members have come to realize that proper
management as everyone was brought on board and informed implementation of the CRM program is central to the
about the CRM model and what it could deliver for the bank’s business.”
business. Although there were a few skeptics, they
were later turn into brand ambassadors for the CRM
program.
Customer To define customer processes and the types of “The use of mystery customers/shoppers aided the
processes customer solutions to be provided as part of the CRM success of our CRM programme.”
program, the company made use of mystery
shoppers.
CRM measures A set of key CRM measures were developed and “The measures of success of our CRM programme
monitored throughout the program implementation. included amongst others: results of the bank’s rating by
Some of the measures were imposed by the central independent service bureau, frequency of the service
bank of Nigeria which had the aim of improving triggers from the service ambassadors and trend
service delivery in the banking industry of Nigeria analysis from operational risk indicators relating to
customer complaints, operational errors, etc.”
Training and Effective training on service excellence was critical in “We undertook training on service excellence.”
recruitment the delivery of a successful customer centric program.
practices “Getting staff to imbibe the CRM principles was resolved
Also, skills gap assessment was conducted and where through orientation classes and training.”
there was a gap that could not be filled internally,
NIBA had to recruit externally
Adequate NIBA experienced lots of problems with the interface “The lack of software solutions made the monitoring of
technology of its CRM applications. The company finally resorted the CRM activities quite tedious.”
to build its own CRM application with the intent to
keep its costs down.
Whilst it may have appeared that the series of laws and policies enacted and
enforced by such institutions as the Central Bank of Nigeria (CBN), the Nigerian
Deposit Insurance Corporation (NDIC) and the Chartered Institute of Bankers in
Nigeria (CIBN) restricted NIBA’s CRM efforts, the research participants assert
that the impact of such policies on the CRM program, although present, was
minimal. The rationale behind this view is that most of the policies are aligned
with best practices for superb customer service delivery, a focus of NIBA’s vision.
Competitors’ activities, however, were very fierce and to some extent, acted as a
constant reminder to NIBA to keep improving on its customer service delivery
levels.
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Table 6-5: Institutional Factors with Impact on NIBA’s CRM Programme
participants
Regulatory motives: CBN played a critical role in creating the awareness “The regulatory authorities continue to
around a good service culture in the banking industry of emphasize the development of strong
Regulations: Government Nigeria. Their efforts were translated into policies and customer relationship management
procedures that were implemented by the service practices”
laws/Industry regulations
operators. Thanks to an efficient consultative process
between the regulators and banking service provides,
these policies are successfully been executed and have
been embedded into the bank’s way of doing business.
Mimetic motives: Since there was not previously a culture of “excellent “A strong competitive environment also
customer service”, the initiatives driven by CBN ensured that people at NIBA were
Competitors’ activities together with those of banking operators heightened committed to the success of the CRM
programme”
customers’ awareness about service quality. As a result
of this, banks try to perform above their peers and are
constantly monitoring their competitors’ activities in the
areas of customer service delivery.
Normative: Socio-cultural Whilst customers have come to appreciate the

heightened focus on service delivery in the banking “Nigeria has no service culture.
and political environment sector, they have become demanding of their banking Therefore, CRM is an innovation and
customers have come to appreciate it”
service providers. Customers, regardless of the value
they bring to the bank want adequate service delivery.
NIBA’s greatest impediment in this area, specially in the nascent stage of its
CRM program, was to obtain an analytical tool that could provide the intelligence
required to create individualized customer solutions. Customer data are
constantly generated throughout the company’s interactions with its customers.
However, the data which is located in the data warehouse has to be mined
intelligently for effective marketing campaigns.
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Table 6-6: Customer Data Factors With Impact on NIBA’s CRM Programme
participants
Data volumes and Just like many of its peers, NIBA generates a vast amount of customer data throughout its interactions with
customers. Such sources include the internet, customer application for new products, contact centre, survey
Velocity forms and much more. The intelligent application of this data to the business is what can differentiate its CRM
programmes to its peers.
Data quality It is gathered that the quality of the data acquired tend “The quality of customer data was critical for the
to be good. However, there is still room to enrich the success of the CRM program.”
(recency and data with additional customer information that relate to
specific customer preferences.
richness of the
data)
Data storage and NIBA’s greatest impediment in this area, specially in the nascent stage of its CRM program, was to obtain an
analytical tool that can help provide the intelligence required to create individualized customer solutions.
mining capabilities
6.4 Summary and Key Insights
CRM implementation in the banking and mobile telephony companies that were
studied in this research differed in many aspects. First, at NITEL, CRM was
driven by top management-- with the CEO and his direct peers advocating in all
internal forums the necessity for NITEL to continue to be a customer driven
company. This advocacy was also translated in to the type and level of resources
the leadership provided to the company so that the CRM programme can be
successfully implemented. On the contrary, at NIBA, CRM was implemented from
the bottom up as the departmental Heads spent a lot of time on convincing
Executives on the benefits of implementing a CRM program. At first, the value of
CRM at NIBA was not recognized by the leadership. Eventually this changed
over time as the middle management team was able to convince the leadership
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through small successes what the true benefits of CRM could be for NIBA if the
programme had the unconditional support of top leadership. Another point of
difference between NIBA and NITEL was the mimetic behavior of NIBA. On the
contrary, NITEL concentrated on innovation by leveraging off its customer
insights to design new and value-add customer solutions. Thirdly, using
Hofstede’s “Confucian dynamism” theory that classifies Nigeria as a short-tem
oriented culture (Fang, 2003), the performance of NITEL has come to
demonstrate that the time orientation of a country should be dissociated from the
company that operates in that country. This theory posits that countries with a
long-term orientation culture are positive, dynamic, future oriented and innovative
as a result of this, companies that operate in countries with a long-term
orientation culture will tend to be innovative and future-oriented. Despite the fact
that NITEL operates in a country with a short-term oriented culture, it was able to
achieve innovation in its products, services and customer solutions; although this
is not necessarily true for NIBA.
The areas of similarities for both companies range from having an operating
structure that supports their CRM vision to data store and mining capabilities
issues as well as the recognition those coercive motives were not drivers behind
the implementation of their CRM programmes.
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CHAPTER 7: CROSS-CASE STUDY RESULTS
Building on the findings of individual case studies presented in Chapter 5 and

Chapter 6, this chapter illustrates the results derived from the aggregated data
across the four case studies consisting of SATEL, SABA, NIBA and NITEL. The
empirical evidences are presented in a question and answer format by focusing
on the three main research questions of this study; namely: 7.1) How is CRM
implementation in emerging markets different from high income, industrialized
markets?; 7.2) What are the contingency factors that could contribute towards
CRM success or failure in emerging markets?; 7.3) How can the CRM strategy
be adapted to the emerging market context?
This novel approach of using the question and answer format to report a multiple
case study is supported by (Yin, 2009, p. 172):
“Case study evidence does not need to be presented in the traditional narrative
form. An alternative format for presenting the same evidence is to write the
narrative in question-and-answer form. A series of questions can be posed, with
the answers taking some reasonable length. Each answer can contain all the
relevant evidence and can even be augmented with the tabular presentations
and citations.”
As part of this approach, research results are interpreted and theoretical

propositions are developed by drawing on multiple extant theories. In the next
section, the first question of this research study is addressed.
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7.1 How is CRM Implementation in Emerging Markets Different from High
Income, Industrialized Markets?
To provide an answer to the above-mentioned question, the factors affecting

CRM implementation success across the four case studies have been
consolidated into emerging market factors. As part of this, similarities and
differences amongst these four case studies together with the strength of
evidence in each case were also considered during the analysis to arrive at a
specific conclusion that makes the identified factor relevant to the emerging
market context. Then, the research results across all four case studies are
contrasted against the findings from the literature on CRM implementation in high
income, industrialized countries (HIC). This allows for a differentiation between
CRM implementation in emerging and HIC markets. Propositions are formulated
based on the observations made.
7.1.1 Factors Affecting CRM Implementation in Emerging Markets: A

consolidated view based on the SATEL, SABA, NITEL and NIBA case
studies
Regardless of their countries, industries and companies, the research

participants have considered CRM implementation success as a function of
increased revenues and profits, reduced service costs, improved customer
loyalty, increased customer retention ratio, improved average customer handling
time, improved first call resolution targets and reduced customer complaints. In
addition to this, the analysis of the four case studies has revealed that the
achievements of the above-mentioned measures of success are dependent on
three important factors (also referred to as dimensions): organizational,
institutional and customer data. As depicted in the figure 8-1 below, each of these
factors or dimensions has a set of indicators. These indicators or variables are
necessary to understand the peculiarities of CRM implementation success in
each company, in particular and also in an emerging market context as a whole.
Furthermore, additional variables, which could be referred to as mediating
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variables, emerged from the field research. These mediating variables relate to
key considerations during the pre- and implementation phases of the CRM
programme which affect the outcomes of the CRM programme.
Below is the description of the formula used for CRM Implementation in

Emerging Markets:
Table 7-1: Equation Model of CRM Implementation in Emerging Markets
Dependent variables Mediating variables
CRMIEM = f[(P1 + P2 + P3) + (P4 + P5)]

Where:
CRMIEM= CRM implementation success in emerging markets
P1 = Variables associated with organizational factors
P2 = Variables associated with institutional factors
P3 = Variables associated with customer data factors
P4 = Variables associated with pre-implementation phase
P5 = Variables associated with implementation and post-implementation phases
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Figure 7-1: CRM Implementation Conceptual Model for Emerging Markets
CRMIEM = (P1 + P2 + P3) + (P4 + P5)
P1A: Vision and strategy
P1B: Enterprise wide initiative

P4: Pre-implementation phase:
Dimensions/Variables P1C: Operating structure Managing
 Company lifestage expectations
P1D: Channel mix  Industry maturity level
P1E: Programme
management
P1: Organisational P1F: Change management I
P1G: Customer processes

CRM Implementation Success:
P1H: CRM measures
 Increased revenues and profits
P1I: Training and recruitment  Reduced service costs
 Improved customer loyalty
P1J: Adequate technology
 Improved customer retention ratio
 Improved average customer handling
P2A: Coercive time
 Improved first call resolution rate
P2: Institutional P2B: Mimetic  Reduced customer complaints
P2C: Normative
P3A: Data volumes and

velocity P5: Implementation and Post-
P3B: Data quality implementation phases: Company
P3: Customer data culture
 Innovation “Novel ideas into practice”
P3C: Data storage and mining
 Speed of implementation
 Linkage with corporate social
investment (CSI) activities
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A. Organizational Dimension
Across all four cases, the collected data reveals that there are ten variables that
can impede on or enhance CRM implementation success in emerging market
economies. Each of these variables is discussed in this section.
A.1 Vision and strategy
The success of CRM implementation in companies has largely been attributed to

a clearly defined vision and strategy (Hsin Hsin, 2007). In this study, having a
CRM vision and strategy was cited in all cases as crucial. The overriding
message from the research respondents was that with a CRM vision and strategy
in place, everybody in the company can sing from the same song sheet. Those
companies such as NIBA that were not able to initially clearly define their vision
encountered a lot of challenges along their CRM journey and as a result of this,
their CRM programme was negatively affected during the early stages of the
implementation of the programme. Apart from the vision and strategy, the CEO
and his Executive team members need to champion the programme. As
observed by one of the research respondents at NITEL:
“The success story of our currently growing customer centricity program is based on the buy-in of
our CEO. He understands customer issues. He owns the (programme). He gives this
(programme) financial support. He gives it every necessary support. He encourages the
consultants and everyone. He understands what customer centricity is about.”
Overall, this finding suggests that a CRM vision and strategy that is clearly
articulated and actively supported by the leadership will result in a positive CRM
outcome. Thus:
Proposition P1A: Companies that have a CRM vision and strategy that is well
articulated and championed by a dynamic CEO are more likely to implement a
successful CRM programme.
A.2 Enterprise wide initiative
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The evidences gathered from this study indicate that CRM has been
implemented in companies in which departments such as marketing, contact
centre, business knowledge or information technology operate in silos, which
made the successful implementation an uphill battle. A case in point is the SABA
and NIBA situation. Unless, all departments, business units and employees are
rallied behind the CRM vision, the CRM implementation programme is doomed to
failure. As a result of this, CRM implementation should not be departmental or
silo-focused; but rather an enterprise wide initiative that combines “physical
resources (e.g., computers and technological infrastructure), informational
resources (e.g., customer databases, salespeople’s call records, customer
service interaction), organizational resources (e.g., customer-oriented culture,
information-sharing routines)” and people (e.g., cross-functional teams
representing diverse departments and business units) to provide value to a
defined customer base at a profit (Raman et al., 2006, p. 40). Thus:
Proposition P1B: Companies that have an enterprise wide CRM programme that
integrates business resources across business units, departments, and all the
hierarchical levels of the organization are more likely to implement a successful
CRM programme.
A.3 Operating structure
Given the mounting pressure on companies to deliver reliable and faster

solutions to their customer base, they have to ensure that they are structured in
such a way that they are agile enough to achieve their vision. Based on this,
there are two important questions that need to be answered: 1) how to design the
task structure of the enterprise to form a co-ordinated whole? and 2) what tasks
allocation to humans (or groups) ensures that the enterprise will act to satisfy its
objectives? (Bernus & Nemes, 1999, p. 1). Regrettably, the extant literature on
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CRM does not acknowledge the critical place that an effective organizational
design can play in the delivery of a successful CRM programme.
However, this study reveals that the CRM vision will only be realized in a
company once its operating structure is aligned with the vision of customer-
centricity. The NITEL case study embodies this alignment between the operating
model and the CRM vision. In contrast, SATEL is very much designed as a sales
organization despite the fact that the company has a CRM vision that focuses on
customer centricity. As one of the research respondents at SATEL pointed out:
“We must relook at the structure of our business. We can’t implement CRM using our current
sales structure”
Given the associated benefits of having an operating model that supports

customer centricity, companies can only be encouraged to re-align their
operating structure with their vision. Clearly, a vision that places customer at the
heart of the company’s activities can be best fulfilled if the organization is
designed in such a way that the resources that are utilized have a clear
understanding of customer needs. In contrast, if the resources that are utilized
are product, sales or process-driven, this can create an incompatibility which will
undoubtedly lead to the ineffective implementation of a customer-centric vision.
The resulting outcomes can only be poor. Consequently, it is suggested that:
Proposition P1C: Companies that have an operating structure that is not sales,
product or process focused; but that is rather customer-centric and aligned with
the CRM vision and strategy are more likely to implement a successful CRM
programme.
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A.4 Multiple channel integration
Today, the multiplicity of channels available to customers when interacting with

companies cannot be understated (Moriarty & Moran, 1990; Neslin, Grewal,
Leghorn, Shankar, & et al., 2006). Beyond the traditional media which include
television, radio, newspapers and magazines, “the channel mix now include “
higher proportions of digital, interactive channels with an explosion in the use of
web and emails”(Bruce, Bondy, Street, & Wilson, 2009, p. 331). For example, to
illustrate how important these channels of communications have become in the
emerging markets context, one of the research respondents at SATEL asserted
that:
“A little while back, an assumption we made was that prepaid based (customers) aren’t online
and they’re on their phones! So they might not to be online via a PC, they’re online via their
phones. They’re all on social networking sites.”
Within South Africa, both SATEL and SABA have also leveraged the informal
channels to engage with their customers. In Nigeria, whilst traditional media have
largely been adopted, there is an increased usage of the web channel as a
support vehicle for marketing activities. Customers still prefer the face to face
interaction which explains the importance of branch network accessibility. NIBA’s
large footprint across Nigeria gives it an opportunity to service its customers
across the various regions of the country. The multiple channel integration has
enabled these companies to up-and cross-sell their products whilst building
customer loyalty. Overall:
Proposition P1D: Companies that can astutely integrate the traditional channels
with the new social media channels as well as the informal channels are more
likely to implement a successful CRM programme.
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A.5 Programme management
In this context, programme management is referred to as the management of the

CRM programme lifecycle which consists of Analysis, design, build, test and
deploy phases. Across South African and Nigeria, the study reveals interesting
findings related to the type of programme management methodology used as
well as the robustness of the programme; mainly driven by the personality and
skills types of the programme Lead.
It was found that those companies that achieved an above average rating on
their CRM programme; namely NITEL and NIBA followed a standardised
programme management methodology that was understood by the project team
members. Coupled with this, these companies’ CRM programmes were run by
individuals with strong personalities and high credibility rating in their
organisations. These programme Leads had both Programme management
technical expertise as well as service management and people orientation skills.
On the other hand, those companies that had an average or below average
rating on their CRM programme had many issues with their programme
management approach. In the words of one of the research participants at SABA:
“The way the program has been run has been difficult. It’s different project management styles or
program management styles…Whereas if you use a standard methodology like PRINCE2, you
can get a guy fresh out of PRINCE2 training. He knows how PRINCE2 works and you can get
him working immediately.”
This situation led the project to be delivered late and far above the initial budget
constraints; thereby making the entire programme very onerous. In this case, the
situation was exacerbated as the high turnover rate of programme managers.
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Therefore, it is proposed that:
Proposition P1E: Companies that use a standardized programme management

methodology that is understood by other project team members are more likely to
implement a successful CRM programme.
A.6 Change management
Change is about making things differently. It is concerned with shifting people

and organisations from a current state to a desired state. However, due to the
fact that employees tend to resist change, it has become difficult to implement it
within organisations (Robbins, 2003).
In this study, it was found that change was easily implemented in those
organizations that were fairly new or had been in operations in less than five
years. Conversely, the CRM change management process encountered a lot of
resistance in those businesses that were much older. However, regardless of the
business life stages, the adoption of the CRM programme as part of the change
management process was feasible when the change intervention took place
throughout the CRM programme life stages. In other words, employees were
more supportive of the CRM programme when they felt that they were
communicated to not just at the end of the programme; but also from its
beginning.
A change management intervention that only occurs during the implementation of

the programme will bear minimal results. To effectively maximize the impact of
the CRM programme, internal and external stakeholders need to be actively
engaged. They need to know about the CRM programmes from the conception to
implementation phase as this also affords them the opportunity to provide input
for consideration for the successful implementation of the CRM programme.
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This summary engenders this proposition:
Proposition P1F: Companies that have a change management intervention

throughout the CRM programme life stages are more likely to implement a
A.7 Customer processes
Key customer processes covering, sales, marketing and service and support
have been identified as impacting on the CRM effectiveness. In this study, the
necessity to have customer processes that are designed, mapped out and
documented was apparent in the research findings. Moreover, the documented
processes need to be communicated with internal stakeholders. In the instances
where new policies and procedures are implemented and should such policies
and procedures affect the customer processes, these processes need to be
amended accordingly so as not to negatively impact on customers’ engagements
with their banking or mobile telephony service providers. This finding is true for all
four companies involved in this study across both industries and countries.
Overall:
Proposition P1G: Companies that define, design, document and communicate
their customer processes with relevant internal stakeholders are more likely to
implement a successful CRM programme.
A.8 CRM measures
CRM measures refer to qualitative and quantitative metrics that are linked to the
CRM programmes. These measures provide an indication of what the CRM
programme aims to achieve over a defined period of time and they are tracked
against past company CRM related targets.
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This study reveals that there are a set of measures that have been defined and
monitored by SABA, SATEL, NIBA and NITEL. The common CRM measures that
were highlighted in this study include:
 Revenues and profits generated. They are concerned with the total sales and
profits generated from the CRM programme.
 Service costs: These costs represent the total cost of the programme and as
such include people costs, systems and technology (software and hardware)
costs, training cost, administration and marketing costs. The aim of these
companies were to minimise their service costs overtime.
 Customer loyalty: This has a number of indicators such as the customer
lifetime value with the service provider as well as the net promoter score. The
net promoter score uses current customer satisfaction level with a company to
forecast the customer loyalty with that company. Customer loyalty is an
important measure for these companies as they believe that their companies
‘revenues can best be achieved if they have loyal customers.
 Customer retention ratio: This is referred to the company’s ability to retain
customers and can be computed by dividing the number of new customer
acquired in a year with the number of customers retained within the same
period.
 Average customer handling time: This is the time the company takes to
handle or respond to customer queries. The average handling time will vary
per channel. For instance, a benchmark for customer handling time in the
contact centre is about 8 minutes whilst a query received via email or the
internet can take up to 48 to 72 hours before it is attended to.
 First call resolution rate: This measure refers to the number of calls that are
handled by the first tier contact centre agents without being escalated to the
next level. This is computed by dividing the number of calls resolved by first
tier agents with the total number of calls received by them.
 Customer complaints: This is concerned with the number and types of
complaints received by customer across all the customers’ touch points.
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An important revelation of this study was that CRM measures that are linked to
individual performances are most likely to be met. As a consequence of this, to
achieve CRM success, companies need to link their CRM measures to
employees’ key performance indicators. Summarizing:
Proposition P1G: Companies that have clearly defined CRM measures that are
linked to employees’ key performance indicators are more likely to implement a
A.9 Training and recruitment
Training, referred to as a “softer” business area should be an integral part of a

CRM programme (Dibb & Meadows, 2004). Whilst the training practices may
differ across companies, industries and markets, the skills required for effective
CRM implementation appear to be identical. Based on this study, four set of skills
were identified as necessary for effective CRM implementation; namely:
 Technical skills
 Business management skills
 Social/people skills
An overriding skill that was identified regardless of the job level and type is a
service-orientation skill. This is a type of skill that employees can display when
engaging with customers by showing empathy and going the extra mile to meet
and exceed customers’ expectations.
Thus, companies that are involved in a CRM implementation programme ought to

ensure that the required service quality skills training are considered when
recruiting new employees in the company. Most importantly, existing employees
also need to undergo training in areas that have been identified as a gap in their
professional performance and growth. Thus:
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Proposition P1H: Companies that have aligned their recruitment skill gaps with
their service excellence skills training are more likely to implement a successful
CRM programme.
A.10 Adequate technology
Not having a 360 degree view of their customer interactions with their firms, has
been one of the setbacks faced by those companies that have not performed well
in their CRM programme. This is also true for this study. It was revealed that a
CRM technology or system, outsourced or insourced, need to capture all
customer data in a single platform that allows business decision-makers to have
an understanding of customer behaviour patterns at their individual level.
Moreover, these stored customer data need to be updated automatically
whenever the customer engages with the service provider. It was also found that
the reason why companies adopted an inadequate CRM system was mainly due
to the fact that the business requirements were not considered. The CRM
technology specifications were put together by the information technology team
with limited consultation with other business stakeholders. Summarising:
Proposition P1I: Companies that select a CRM system based on their business
requirements (and not just technology/systems requirements) thereby enabling
them to obtain a single view of their customer interactions with them are more
likely to implement a successful CRM programme.
B. Institutional Dimension
Prior research provides some interesting insights and the required theoretical
context on how institutional norms, values and regulations impact on companies’
behaviours in an institutional environment (DiMaggio & Powell, 1983; Scott,
1987). Based on the three types of isomorphisms proposed by DiMaggio and
Powell (1983) namely coercive, normative and mimetic; the results of this
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investigation on the likelihood effects of institutional isomorphisms on CRM
implementation success in emerging markets is presented.
B.1 Coercive isomorphism
The concept of “isomorphism” has been referred to as a “constraining process

that forces one unit in a population to resemble other units that face the same
type of environmental conditions” (DiMaggio & Powell, 1983, p. 149). Coercive
isomorphism thus takes place when companies that are seeking legitimacy in
their operating environments abide by regulations to avoid being penalised by
parties on which they are dependent. Dacin (1997, p. 72) observed that
“organisations adopt institutionally prescribed characteristics and that
institutional pressures were more important in determining isomorphisms”
Contrary to extant studies, according to which coercive motives are the

underlying reason for companies to adopt certain business practices, this study
uncovers that in emerging markets, industry regulations do not have an effect on
the business practices being implemented by companies in both Nigeria and
South Africa. Research respondents across both countries acknowledge that
industry regulators are partners with which they work towards achieving a
common goal: high service level quality for customers. Therefore, thanks to these
collaborative efforts between parties and also the fact that these principles of
excellent service quality are embedded in their philosophy of doing business with
their customers, they do not believe that they need to be forced or coerced to
behave in a particular way to avoid sanctions by the industry regulators.
Consistent with this logic, it is proposed that:
Proposition P2A1: Industry regulations in an emerging market do not impact on

the successful implementation of CRM programmes.
Interestingly, the field study also reveals that the multiple taxations are a major
problem in emerging markets, specially in Nigeria. These various taxes that
companies have to pay for to the national and local government impact on their
170
operating expenses. Consequently, in order to remain profitable, these high costs
incurred are passed over to customers who end up paying high charges for the
services they receive. Thus:
Proposition P2A2: Government taxations are more likely to negatively impact on

the successful implementation of CRM programmes in Nigeria than in South
Africa.
B.2 Mimetic isomorphisms
Mimetic isomorphism tends to take place when there are market changes. This
ambiguity in the market forces companies to mimic the behaviour of other
industry players being viewed by them as successful.
It has been observed in this study that the banking and mobile telephony sector,
regardless of their countries differ when it comes to mimicking competitors’
activities. Both mobile operators in South Africa and Nigeria have a strategy that
focuses on innovation. With this in mind, they have positioned themselves as the
leader in the industry when it comes to offering innovative customer solutions to
their customers. Keeping this in mind, these organisations are not affected by the
activities of their competitors, direct or indirect.
On the contrary, in the banking sector of South Africa and Nigeria, both service
providers do not hesitate to behave in a similar fashion as their competitors; by
adopting, as an example, the same marketing and communication practices. This
is more visible when competitive activities enable market players to acquire and
retain customers or when such activities can enhance the overall outcomes of
their marketing drives.
In light of what has been observed, it can be concluded that mimetic motives for
CRM implementation in an emerging market environment is a function of the type
of industry the company belongs to. Given this logic, it is proposed that:
171
Proposition P2A1: Mimetic motives for successful CRM implementation
programmes in emerging markets are more likely to be adopted by those
companies that operate in the banking sector than those in the mobile telephony
sector.
Additionally, it was found that these banking institutions that were mimicking their
competitors were also in a position to still attract and retain customers. In other
words, having similar CRM activities as their competitors did not deter banking
service providers’ customers to continue to engage with their banks. Overall:
Proposition P2A2: Mimetic motives are less likely to negatively impact on the
success of CRM implementation programmes in the banking sector of emerging
markets.
B.3 Normative isomorphism
Normative isomorphism relate to the diffusion of norms that are deemed

appropriate amongst members of a society. Dacin (1997, p. 51) posits that
“organizations are subject to influence from societal and cultural expectations
within the larger social system”. This assertion was further backed up with the
research findings of this study.
This study reveals that there are three normative mechanisms that are found in
emerging markets. They include languages, political stability and the ability of the
company to be involved in the programmes that help address community
challenges. These societal mechanisms have an impact on the outcome of the
CRM programme. Thus, effective CRM practices by organizations should take
heed of these normative factors.
With regard to the community involvement, it was found that companies that get
involved in addressing social issues such as unemployment, training or the
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provision of much needed infrastructures at local schools can help in addressing
the effectiveness of CRM programmes in emerging markets. For example, in
South Africa, as part of its enterprise development, SATEL has empowered the
local community in creating jobs through the hiring of zoners. They are
community leaders who understand their communities as a consequence they
receive training from SATEL and are provided with the necessary infrastructure
to sell airtime to community members. These zoners also earn a commission
from these airtimes sold. In Nigeria, NITEL has also been active in promoting
entrepreneurship through the partnerships with local universities and government
agencies. Moreover, NITEL also invests in educating its communities about the
negative impact of vandalism of telecommunications masses on the quality of
services mobile telephony can deliver to the communities. The resulting effects of
these positive interventions has been increased revenues and brand loyalty to
the service providers. Based on this logic, it is proposed that:
Proposition P2C1: Companies that invest in social programmes that uplift their
communities are more likely to implement a successful CRM programme.
It was also found that the political environment plays a critical role in a company’s
ability to increase revenues, sell more products or reduce costs. In South Africa,
research participants recognise that the fairly stable political environment has
helped the company in achieving its CRM objectives. In Nigeria, whilst the
potential of attracting more customers is immense, companies that were
interviewed shied away from having a presence in some regions, and in
particular in the northern province of the country, simply because of the political
unrests that prevail in that part of the country. Given this, it is suggested that:
Proposition P2C2: Companies that operate in a stable political environment are

more likely to implement a successful CRM programme.
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Language is undoubtedly one of the important factors for effective
communication in emerging markets. For example, in Nigeria, NITEL believes
that it has grown market share because it has been innovative in capture the
hearts and minds of its youth market by using the type of language that this
segment of the population can identify with. This also goes for other companies
in South Africa who have adapted their language to the environment they are in.
For example, call centre agents in South Africa are able to assist clients in at
least 3 of the official languages.
Proposition P2C3: Companies that interact with their communities in their local
languages are more likely to implement a successful CRM programme.
C. Customer Data Dimension
The customer data dimension refers to customer record and the leveraging of
company resources to using such records in the successful development and
implementation of its CRM programme. Prominent CRM scholars such as Payne
and Frow (2005) assert that data repository is an important component of the
information management process. Keeping with this view, it emerged from the
data compiled during this research that, in addition to customer data storage and
mining capabilities, a successful CRM programme is dependent on the customer
data quality, encompassing the recency and richness of customer data.
Customer data volumes and velocity was also discussed by the research
participants.
C.1 Data volumes and velocity
According to the findings of this study, although customer data is an important

component of a CRM implementation programme, just building up the database
by adding new customers to it will not result in companies becoming effective at
creating and strengthening their relationship with their customers. A case in point
is SATEL that has built up a large database across all its operations. However,
the limited integration of the company databases coupled with the lack of
customer data mining capabilities available at SATEL are making it difficult for
174
them to engage with customers on a one on one basis. Another example is that
of NIBA in Nigeria. NIBA faces the challenge of keeping its customer records up
to date. So, having a voluminous database and the capacity to obtain such
customer data at a fast rate is not an indication that the CRM programme is
successful. Thus, it is proposed that:
Proposition P3C1: Companies with large customer databases are not

necessarily likely to implement a successful CRM programme.
C.2 Data quality
Whilst the size of the database is not indicative of the success of the programme,
research participants agree that the quality (recency and richness) of customer
data is an important step towards successful CRM programme. At SABA in
particular, it was highlighted that by enriching its customer database, the
company was in a better position not just to reduce its costs to serve its
customers; but also to stop “annoying” their customers as more relevant
messages were communicated to such customers at their preferred time, using
their preferred communication channels. The same goes for NITEL. Its customer
preference centre is steering the organisation towards creating innovative
solutions for individual customers. Hence:
Proposition P3C1: Companies with an up-to-date and rich customer database

are more likely to implement a successful CRM programme.
C.3 Data storage and mining capabilities
This study reveals that the thrust of a successful CRM programme lies in a
company’s ability to integrate its analytical and operational CRM capabilities. For
this to occur, companies need to have robust data storage and mining
capabilities. On the basis of this logic, it is proposed that:
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Proposition P3C1: Companies with robust data storage and mining capabilities
are more likely to implement a successful CRM programme.
On top of the above-mentioned three dimensions, the findings suggest that there
are mediating variables that need to be considered in the pre-and post
implementation phases of the CRM programme.
During the pre-implementation stage, companies must be cognisant of their

lifestage as well as the level of saturation of their industries. This type of
knowledge will be useful in setting CRM goals, manage stakeholders’
expectations and more importantly mitigate the potentially high risk of failure of
the CRM programme. Consequently, it is proposed that:
Proposition P4: A CRM readiness assessment based on the company lifestage

and industry saturation level can help mitigate the potentially high risk of CRM
failure.
Moreover, there were additional indicators that led to the conclusion that an
effective CRM programme is achieved in organisations in which there is a strong
culture of innovation, speed of delivery of programmes and a commitment to the
uplifment of community lives. Summarising:
Proposition P5: an organizational culture that encourages innovation, speed of

delivery and corporate citizenship is necessary to implement an effective CRM
programme.
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7.1.2 Contrasting research findings from CRM implementation in emerging
markets against high income industrialised countries
By contrasting research findings from CRM implementation in emerging markets

against high income industrialised countries, the following remarks can be made:
 The CRM literature pays particular attention to the organizational factors

linked with CRM success, with the exception of recently published work by
Hillebrand et al. (2011) that looks at institutional factors only. This study
focuses on organizational, institutional and customer data factors impacting
on CRM effectiveness in organisations. In addition to this, it looks at
contingency factors of CRM implementation in the African market context.
 The resource-based view appears to be the dominant theory used for studies
on CRM (Chakravorti, 2009; Gouthier & Schmid, 2003). This theory suggests
that resources that are well protected by an organisation can be a source of
competitive advantage. Such resources include the company’s skills,
capabilities, processes and assets that enable it to design and implement
effective strategies. In a way, this may explain why past CRM research have
extensively focused on organizational factors.
 In addition to this, the focus on the resource-based view of CRM coupled with
the dearth of CRM research in emerging markets could be a justification for a
lack of emphasis on culture or context theories and their impact on CRM. In
this study, three theories were blended together namely the contingency
theory, institutional theory as well as Hofstede’s fifth national dimensions of
cultures to arrive on how CRM implementation from emerging markets differ
from High Income countries.
 With regard to factors for effective CRM implementation in emerging markets,
sixteen factors were identified along the three dimensions of organizational,
institutional, customer data factors.
177
 Table 7-3 contrasts emerging markets findings against CRM literature in HIC
markets whilst table 7-2 provides a legend displaying the symbol used as well
as their description.
Table 7-2: Legend
Symbol Description
Consistent: No adaption is required
Consistent: Adaptation is required
≠ Inconsistent
_ Not found
x Not covered
The clear Harvey ball symbolizes the consistency of the factor identified in the
case study in emerging markets with what was found in the CRM literature in
high income and industrialized countries (HIC); and also indicates that there is no
need to adapt to the emerging market context when it comes to the application of
the identified factor.
The half full/clear Harvey ball symbolizes partial consistency; and as a

consequence, it requires that the identified factor, in some aspects, gets adapted
to the emerging market context.
The symbol (≠) means that there is inconsistency between the identified factors
in emerging markets and those found in HICs. It also indicates that there is a high
178
degree of impact (positive or negative) that these factors have on the
effectiveness of CRM implementation in emerging markets.
The symbol (-) means that the factor was found in the emerging context but not
in the HICs.
The symbol (x) means that the identified factor was not covered in the literature
of CRM implementation in high income, industrialized countries.
179
Table 7-3: Contrasting Emerging Markets Findings against the CRM Literature in HICs
Contrasting Emerging markets findings against CRM literature in HICs
High income,
industrialized Emerging markets
countries (HIC)
Research
Literature review SABA SATEL NIBA NITEL General comments
findings
A CRM vision is a common factor across both

Vision and
Shared vision emerging and HIC countries for an effective
strategy
CRM implementation programme.
An enterprise wide CRM that encourages
Buy-in, inter- collaboration and taps into interdepartmental

Enterprise wide
departmental competencies, skills, knowledge and efforts is a
CRM
collaboration requirement for CRM effectiveness across both
emerging and HIC countries.
A clearly defined operating structure was

x Operating
_ _ _ _ identified as a must factor for CRM effectiveness
structure
in emerging countries. This factor was not
180
mentioned in HIC countries.
The EM recognizes the importance of channel
integration and at the same time places an
emphasis on informal channels which are not
covered by HIC countries. Perhaps, because of
the very nature of the makeup of its
demographics, HIC countries have not focused

Multi-channel integration Channel mix
on informal channels that are mainly utilized by
people at the bottom of the pyramid. The social
media was also identified in EMs market as a
growing vehicle used by companies and
customers to engage with those who are in their
networks.
Whilst emerging markets adhere to the principles
of sound CRM programme management, the
application of such principles does not always

Programme
Project management follow. EMs that have used a consistent
management
programme management methodology have had
the tendency to be more successful in their CRM
efforts than others.
181
Training and change Change Change management practices in EM are
management management consistent with HIC countries.
Whilst in HIC, the emphasis is placed on
business process re-engineering, in Ems,
Business process re- Customer

≠ ≠ ≠ ≠ Common customer processes include sales,
engineering processes marketing and services and support. These
processes are designed, documented and
shared with relevant business stakeholders
The identified CRM measures in Ems are
consistent with HIC countries. It was found in
CRM measures CRM measures this study that CRM measures that are linked to
individual KPIs tend to be achieved by the
business.
The importance of training CRM users and those
implementing the programme is acknowledged
across both markets. However, in Ems a special

Training and
Training and change
emphasis has been placed on service orientation
recruitment
management
skills available and to be developed in the
practices
company. A long list of additional skills required
for a customer-centric company is provided in
this report. Moreover, EMs believe that to fully
182
embed the continuous success of the CRM
program in the organisation, the HR practices
should recruit people with the types of skills
needed to reinforce the customer-centric culture
of the organisation.
An adequate technology that is selected on the
basis of meeting customer needs (and integrates

IS/Technology Adequate
business as well as technical requirements) has
integration technology
been identified by both Ems and HICs as a key
factor for CRM success
This factor was inconsistent with what was found

Government laws
Government laws and
and Industry ≠ ≠ ≠ ≠ in HICs. EMs do not believe that regulations are
Industry regulations
regulations
impediments to CRM success
Institutional Factors
Competitors The HICs view mimetic motives (e.g. such as
(Study by hillebrand et competitors’ activities) as having a negative

al., 2011) Competitors’
≠ ≠ impact on a company CRM. This is to some
activities
extent true for companies in the banking sector
whilst those in the telecommunications industry
(regardless of their countries) do not tend to
183
mimic their competitors. Thus, the findings were
inconsistent in Telco companies as they have
positioned themselves as leaders and not
followers.
This factor was found in EMs; but not in the

x Socio-cultural and
political _ _ _ _ literature on
environment
effective CRM implementation in HICs.
Data volumes and

x _ _ _ _ This factor was found in EMs; but not in
the literature on effective CRM
velocity
implementation in HICs.
This factor was found in EMs; but not in

x Data quality _ _ _ _ the literature on effective CRM
Customer data
implementation in HICs.
Information This factor was found in both emerging

management process Data storage, countries and industrialized countries.
including data
safety and mining
repository, IT systems,
analytical tools, front and capabilities
back-end office
applications)
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The cross case analysis of CRM implementation in the banking and mobile
telephony sectors of Nigeria and South Africa provides fertile grounds for
acknowledging the uniqueness of these emerging markets. It clearly illustrates
how CRM implementation in emerging markets differ from high income
industrialized markets. Typically, this study found that out of the 16 factors that
were identified,
 Seven of them were consistent with the literature in CRM implementation

in industrialized countries and they did not require being specifically
adapted to the emerging market context. They consist of CRM vision and
strategy, enterprise wide-CRM, change management, programme
management, CRM measures, adequate technology and customer data
storage and mining capabilities.
 Three factors were inconsistent with the literature namely customer
processes, coercive and mimetic isomorphisms.
 Two factors were found in both emerging and industrialized markets; but
these factors needed to be adapted to the emerging market context
namely: multiple channel integration, and training and recruitment
practices.
 Four factors were not found in the CRM literature in high income
industrialized countries; but these factors emerged from the emerging
markets data. They include operating structure (the need to have an
operating structure that is aligned with the CRM vision), normative
isomorphism (the stability of the political environment, use of language
and the positive impact of corporate social investments on customer
acquisition and retention), customer data volumes and velocity and
customer data quality.
 Last but not least, this research reveals that there are mediating variables
that can impact on the final outcomes of the CRM programme. These
variables are splitted into two phases: pre-, and during and post-CRM
implementation phases. They include the company life stage and its
185
industry saturation level as well as a culture of innovation, the speed of
CRM implementation and the company’s involvement in its community’s
activities.
With this understanding of how CRM implementation in emerging markets differ

from high income industrialized countries, one may be curious to know about the
contingency factors for effective CRM implementation in emerging markets. This
forms the focus of the next section.
7.2 What Are the Contingency Factors that Could Contribute Towards CRM
Success or Failure in Emerging Markets?
Following on the results presented in the earlier section of this chapter, the
contingency factors for CRM implementation in emerging markets are computed
in table 7-4 below:
Table 7-4: Equation Model of Contingency Factors of CRM Implementation

in Emerging Markets
CRMCFEM = (CRMEM - CRMHIC) + CRM#HIC

Where:
CRMCFEM = Contingency Factors of CRM Implementation in Emerging Markets

CRMEM= Success Factors for CRM Implementation in Emerging Markets
CRMHIC= Success Factors for CRM Implementation in High Income, Industrialised
Countries (Note: as per the literature review)
CRM#HIC= Success Factors for CRM Implementation not available in High Income,
Industrialised Countries; but was generated from the study on emerging markets.
186
In light of the above formula, it can be concluded that the contingency factors for
successful CRM implementation in emerging markets include:
 Operating structure (the need to have an operating structure that is

aligned with the CRM vision),
 Multichannel integration
 normative isomorphism (the stability of the political environment, use of
language and the positive impact of corporate social investments on
customer acquisition and retention),
 and customer data quality.
Thus, it can be proposed that:
Proposition P6: The contingency factors for successful CRM implementation in

emerging markets include: operating structure, multichannel integration, training
and recruitment practices, normative isomorphism and customer data quality.
In conclusion, companies need to pay special attention to the above-mentioned

factors when implementing their CRM strategy in an emerging market context.
The next question relates to how the CRM strategy can be adapted to the
emerging market context.
7.3 How Can the CRM Strategy Be Adapted to the Emerging Market
Context?
This question is extensively answered in the next chapter under

recommendations.
187
CHAPTER 8: CONCLUSIONS AND RECOMMENDATIONS
This chapter concludes this study. First, it presents (8.1) the conclusions and
recommendations which are then followed by (8.2) the implication and (8.3)
limitation sections. Finally, (8.4) some areas for future research are suggested.
8.1 Conclusions
Companies that operate in both industrialized and emerging markets are

constantly building and strengthening relationships with customers with the view
to achieve sustained profits (Eid, 2007; Haridasan & Venkatesh, 2011; Meadows
& Dibb, 2012). Whilst the extant literature primarily focuses on CRM
implementation in industrialized markets (Ledbetter, 2007; Payne & Frow, 2005;
Troy, 2008; H. Wilson et al., 2002), the scarcity of research in this domain in
emerging markets in general, and Africa in particular remains undisputed
(Burgess & Steenkamp, 2006). The lack of research of CRM implementation in
Africa has created significant gaps in terms of understanding and defining the
contingency factors for successful CRM implementation in Africa as well as
developing and adapting CRM strategies to the African context. Similarly, whilst
most of these studies on CRM implementation in industrialised markets have
focused on the Organisational or RBV theory as their main theoretical lens
(Coltman et al., 2009; Keramati et al., 2010), they have not applied theories
triangulation to CRM implementation as it is the case in this study which
combines three theories to answer the research questions. As part of this
investigation of CRM implementation in the banking and mobile telephony
sectors of Nigeria and South Africa, the objectives were to elicit responses on
these three research questions: (1) How is CRM implementation in emerging
markets different from high income, industrialized markets?, (2) what are the
contingency factors that could contribute towards CRM success or failure in
emerging markets?, and (3) how can the CRM strategy be adapted to the
188
emerging market context? The consistency matrix that is shown below links the
research questions with the findings and suggested research propositions.
Table 8-1: Consistency matrix linking research questions, findings and

suggested research propositions
Research questions Findings Suggested Propositions
How is CRM implementation CRM implementation in emerging markets P1 + P2 + P3

in emerging markets different is a combination of three main factors;
from high income, namely organizational, institutional and
industrialized markets customer data.
What are the contingency factors It was found that companies that want to P6
that could contribute towards CRM achieve success in their CRM
success or failure in emerging implementation programme in emerging
markets markets would need to be cognizant of the
following contingency factors:
 Operating structure (the need to have

an operating structure that is aligned
with the CRM vision),
 Multichannel integration (including

informal channels)
 normative isomorphism (the stability of

the political environment, use of
language and the positive impact of
corporate social investments on
customer acquisition and retention),
and
 Customer data quality.
How can the strategy of CRM be The research results show that CRM P4+P5 + P6
adapted to the emerging market implementation can be effectively adapted
context? to emerging markets by:
 Defining the CRM readiness level of

Companies prior to them embarking
upon their CRM program. This is
189
influenced by two elements; namely
the maturity level of their industries
and the company lifestage
 Applying CRM indicators that are

relevant to the emerging market
context.
 Understanding and applying the CRM

contingency factors that can directly
have an impact on CRM success.
 Creating an organizational culture that

focuses on innovation and speed of
delivery (such as speed of CRM
implementation).
 Linking CRM activities to corporate

social investment initiatives.
To address the first research question of this study, the differences and
similarities of CRM implementation in industrialized and emerging markets were
discussed in this report. As illustrated in table 8-2, the main findings across the
three dimensions of organizational, institutional and customer data factors were
grouped in factors that were consistent, inconsistent and not found in emerging
markets.
190
Table 8-2: Summary of CRM Factors in Emerging Markets that are New,
Consistent, and Inconsistent with Industrialized Markets
Indicators Comments
Consistent/Inconsistent/Not
found
Vision and strategy In both markets, it was found that a well Consistent
articulated CRM vision and strategy that
is supported by the leadership is a key
factor for CRM success.
Enterprise wide CRM Wide company efforts involving various Consistent

teams such as technical team,
marketing, operations, business
knowledge to develop and implement
the appropriate CRM solutions were
found in both emerging and
industrialized markets.
Operating structure This factor is not mentioned in the New factor

literature of CRM implementation in high
income industrialized markets. In the
emerging markets, the success of CRM
hinges on the company ensuring that its
operating structure is defined and set up
in a way that supports the overall CRM
vision.
Channel mix Although other channels such as the Consistent-but adaptation

branches, contact centres were found in is required
both markets, informal channels and
social media form an integral part of the
channel mix strategy developed by
companies in emerging markets.
Programme management A CRM programme management that is Consistent

sound, monitored and overseen by
someone who is people oriented (can
interact at all level of the organizational
hierarchy), has credibility and possesses
both PM technical and service
management skills were consistent in
191
both markets.
Change management Change management was also Consistent

acknowledged in both market as
necessary for effective CRM
implementation
Customer processes Whilst in the industrialized market the Inconsistent

focus is on business re-engineering
process, in emerging markets it was
found that companies need to define,
map out and document their customer
processes. In addition to this, the
adopted customer processes need to be
shared across all the business units and
departments.
Training and recruitment Whilst in both markets the need for Consistent- but adaptation
practices training and recruitment of employees is required
with appropriate skills was mentioned, in
emerging markets, there appears to be
a stronger need to have people with the
analytical skills and a stronger service
oriented culture. However, these skills
are not always readily available. Also,
training practices tend to be slightly
different in emerging markets. The
emphasis is still on class-based training-
although e-learning is also growing.
CRM measures CRM measures in both markets consist Consistent

of both quantitative and qualitative
measures. Moreover, there is a move
towards aligning the company CRM
measures with individual and
departmental key performance
indicators.
Adequate technology An adequate CRM system that meets Consistent

both the business and technical
requirements are critical for effective
CRM implementation. Also, in both
markets, it was found that such a
system needs to provide a 360 degree
of the customer across all its interaction
192
points with the company.
Coercive isomorphisms All the four companies that were studied Inconsistent
across the two countries indicated that
coercive measures were not a reason
for adopting their CRM practices. They
have all acknowledged the necessity of
their respective industries to be
regulated and are working closely with
the regulators to devise and adopt
practices that will enhance service
delivery standards. They view this
approach as sound way of doing
business in the markets in which they
operate.
Normative isomorphisms This is a new factor that was not found New factor
in the literature of CRM in industrialized
markets.
Mimetic isomorphisms In the high income countries, it was Inconsistent

found that companies model themselves
after the CRM practices of others
operating in the same environment
when they perceive these practices to
be appropriate or normally sanctioned
(Hillebrand et al., 2011). In emerging
markets, it was found that mimetic
motives for CRM adoption were a factor
of the type of industry the company
found itself into. For instance, mobile
telephony operators did not model their
CRM practices after the practices used
by their competitors as opposed to
banking operators who had mimetic
motives for the adoption of their CRM
practices.
Customer data volumes and The findings of this study reveal that the New factor
velocity ability to manage large volumes of data
is imperative for the success of CRM
implementation; particularly since the
volumes, sources and velocity of data
has increased over the years. This
193
specific indicator was not mentioned in
the CRM literature on industrialized
markets.
Customer data quality Research participants in emerging New factor

markets are of the opinion that the
quality (recency and richness) of
customer data is an important step
towards successful CRM programme.
This specific indicator was not discussed
in the literature of CRM in industrialized
markets.
Customer data storage and It was found in both emerging and Consistent
mining capabilities industrialized markets that companies
need to have robust data storage and
mining capabilities for an effective CRM
programme to be realised.
The answer to the second research question was based on an equation model
that was developed by the researcher. This equation model took in consideration
the difference between CRM factors in industrialized and emerging markets.
Specifically, factors that were new, inconsistent or consistent (but that required
adaption) were identified as contingency factors for CRM implementation in
emerging markets. In other words, the effective application of these factors by
organizations when implementing CRM programmes in emerging markets will
undoubtedly enhance the success rate of their CRM programmes. These
contingency factors are exhibited in table 8-1.
The third research question elicited responses on how the strategy of CRM can
be adapted to the emerging market context. Based on the research findings, it
was found that an organizational culture that fosters innovation, speed of
implementation as well as that links its CRM programmes to social investment
activities better equips the company to enhance the success rate of its CRM
194
programmes. Moreover, defining and applying CRM indicators relevant to the
emerging market context and understanding the contingency factors for CRM
implementation in this market will not just assist companies in avoiding the CRM
pitfalls; but will place them into the right trajectory to success. Nevertheless, this
study also found that prior to embarking on a CRM programme companies must
assess their level of CRM readiness which is determined by two elements;
namely the maturity level of their industry and the lifestage of the company.
8.2 Recommendations
Because inductive, theory building rather than theory testing is the goal of the
thesis, its final chapter must always present a proposed theory to solve the “how
to” research problem. Moreover, the final “further research” section of the thesis
will acknowledge that this theory will have to be tested for (Perry, 1998).
Consistent with this view, the recommendations that have emanated from this
study will now be presented.
To adapt their CRM strategy to the emerging market context, it is proposed that
companies:
 Assess their readiness to implement a CRM program through the

application of this newly developed heatmap of predicted success/failure
of CRM, and
 Apply this bespoke CRM index that is relevant to emerging markets when
implementing their CRM program.
195
8.2.1 Assessing the readiness of companies to implement CRM
One of the key insights of this research has been the level of expectations that
CRM programmes have created in organisations. Perhaps, due to their limited
understanding of their environment together with increased pressures from both
shareholders and customers, company’s executives have had high expectations
of their CRM programmes. This is despite the much publicized high rate of CRM
failure. To better manage these expectations, it is recommended that company
executives invest the necessary amount of time in understanding the dynamics of
their companies and industries before setting expectation levels on their CRM
implementation programme. An effective way of doing so is to use a heat map to
plot the current positioning of the company.
As depicted in figure 8-1 the heatmap is a graphical representation of data in

which the CRM success rates are shown in a matrix that uses three different
colours to differentiate the level of success and failure rate that can be achieved
by a company. For each quadrant, an appropriate current state description is
provided as well as a relevant strategy is recommended. The four companies in
which the data were collected are represented on this heatmap.
196
Figure 8-1: Heatmap of CRM predicted success/failure rate
High SAB
A
SAT
Industry
EL
saturation
level
NIB
Medium
A
NI
TE
L
Low
Intro Growth Maturity Saturation Decline
Company Life stage
As stated earlier, there are guidelines that have been provided to companies that
want to use the CRM heatmap as a tool to better set their expectation levels of
their CRM programme. The details behind the strategic actions for each company
in a quadrant type is exhibited in table 8-3.
By doing so, it is hope that CRM executives can be in a better position to assess
their readiness for implementing their CRM strategy in an emerging market
context; and also to adopt the appropriate strategy necessary to enhance the
success of their CRM programmes in such emerging markets.
197
Table 8-3: Legend on CRM Predicted Failure/Success Rate and Key
Strategic Actions
Quadrant Company Description Failure/Success rate Strategic Actions
type
 New to growing company in a  Success rate:  Aggressive

low to medium saturated industry 80% or more promotions and brand
 Culture is fairly new, thus  It takes awareness
everybody is on board between 2  Innovative customer
(Green)  Drives innovation and 3 years to solutions along

 Increased customer acquisition realise the products, services,
 Since the company starts off with CRM benefits marketing and sales
a new customer base, accuracy  Design and document
of data may be higher. Data is customer processes
not obsolete  CRM vision is clearly
 Fewer entrants in the markets communicated and
the visibility of the
CRM champion is key
 Define and monitor
CRM measures
 Recruitment of people
with the right level
skills to build a
service-oriented
culture
 Company is in its late maturity to  Failure rate:  Focus on change
saturation stage and operates in 50% or more. management
a low to saturated industry  It takes longer  Provide incentives to
 Expensive to implement CRM to realise motivate staff to
(Red)  Legacy system issues CRM benefits: achieve targets

 Misalignment between technical 10 years or  Close interaction with
and business needs more IT/systems vendor
 Decentralized business units  Build data storage
 High CRM team turnover rates and mining
198
 Total cultural transformation is capabilities
required  Manage stakeholders’
expectations
 Growing to mature company  Failure rate:  Focus on retention by

operating in a medium to highly 25% or more identifying key trigger
saturated industry  It takes 3 to 5 points across the
 New customers are fewer, years to customer lifecycle that
existing customers tend to switch realize CRM indicate when
(Yellow)
to nearest competitors (specially benefits customers can leave
if there is no perceived value in the company
the quality of the service offered)  Need for strong CRM
analytical skills in the
company
8.2.2 Designing and implementing a CRM index for Emerging Markets
The CRM implementation index is a composite index measuring CRM success

across three dimensions; namely organisational, institutional and customer data.
It incorporates the 16 indicators mentioned earlier. This index can be useful to
companies implementing CRM in emerging markets as it provides a measure for
each identified indicator. These measures can be checkpoints necessary to
understand the practical elements needed to achieve success for a CRM
programme. Table 8-4 represents the CRM implementation index applicable to
an emerging market context.
199
Table 8-4: CRM Implementation Index
Rating
Dimensions Indicators Measures High= Medi Low=

2 um=1 0
Organisational Vision and strategy  We have a well articulated company vision that centers on customer
delight and commitment (and not sales or product or processes).
 We have conducted a CRM readiness assessment using the Heatmap of
predicted CRM success/failure (see figure 7.2 above).
 We have triangulated the results of this assessment against other data
sources to develop a CRM strategy relevant to our company.
 We have a clearly defined CRM strategy that fully supports our vision of
customer delight and commitment.
 Our CRM strategy has been broken down into actionable steps for
implementation and review by the business every six months.
Enterprise wide  We have a CRM champion in the organisation

CRM  Our CRM champion is highly visible and understands customers’ needs
 Our CRM strategy was developed with the input of key internal
stakeholders representing cross functional members of the company.
 Our CRM strategy has been fully communicated and is constantly been
communicated to the business units through various formal and informal
business foras.
 Our CRM strategy has been adopted by the business and there is written
record that all business units are supportive of it.
Operating structure  We have designed an operating structure that supports our CRM
strategy.
 Our CRM organisation is structured, its resources are defined as well as
their roles and responsibilities.
 Our CRM organisation mandate from the business is clear.
200
Multichannel  Our marketing efforts combine both traditional and new media to attract
integration and retain customers.
 When use at least three informal channels to interact with our
consumers.
 We understand the needs of our informal markets and the types of
channels of communication that appeal to them.
 We effectively use social media such as twitter, facebook and linkedin to
attract and retain our customers.
Programme  Our CRM programme management Lead has a recognised Project
management Management certification/technical skills.
 The CRM team uses a standardized programme management
methodology that is understood by all.
 Our CRM programme assigned financial resources, people and time are
realistic.
 Our organisation has an excellence centre that has helped in prioritizing
the importance of this CRM programme, thereby indicating to internal
stakeholders to avail themselves to assist in achieving the programme
goals.
 There is a Programme management plan incorporating key milestones,
tasks, allocated resources in place and it is monitored regularly by a
dedicated CRM team member.
CRM measures  Our CRM measures are clearly defined and are achievable.
 Our CRM measures are linked to each employee’s and department key
performance indicators.
 Our CRM targets are closely monitored by the business.
Change  Our change management strategy was implemented throughout the

management CRM programme; namely before, during and after the CRM programme
was launched
 We have CRM change agents in each department.
 Our change management team is effective at rallying everyone behind
the CRM vision.
201
Customer  Our customer processes are defined, mapped out, documented and
processes communicated to the business.
 New company policies and procedures that impact on customer
processes are swiftly communicated to relevant business stakeholders
so that such processes are amended.
Training and  The CRM team has individuals who are subject matter experts in: CRM
recruitment strategy, analytical CRM, technical CRM (deep understanding of the
practices CRM software and its limitations, Prince2 methodology, database
management and campaign management
 Our organisation recruit people with a service-oriented attitude
 We are increasingly hiring people with an innovative mindset who are
creative and committed to delivering innovative solutions to our
customers
Adequate  Our CRM system was selected on the basis of our business
technology requirements
 Our CRM systems are automated
 Our CRM system allows us to have a single view of our customers
across all touch points
Institutional Coercive  We regularly engage with our industry regulators with the view to help
isomorphisms provide inputs into policies that can enhance our industry and improve
the services we provide.
 We believe that coercion must be used by the relevant institutions to get
us to meet the minimum customer service standard levels.
 Our service delivery standard levels meet or exceed the required
standards set by the relevant institutions such as the national industry
regulator.
202
Normative  We take language barriers in consideration when engaging with
isomorphisms customers, particularly with those from diverse cultural background.
 We are cognizant that we operate in a market in which communities
have daily challenges such as unemployment, poor health infrastructure,
limited education and as such we make sure that our actions help
improve the standards of the communities in which we operate.
 The short-term or long-term orientation of the leaders of this country do
not impact on our company long-term orientation or innovation when
making business decisions.
Mimetic  To attract and retain customers, we have implemented our CRM

isomorphisms programme on the basis of what our competitors are doing in the market
 Our CRM programme is a reflection of what other players in the market
are doing.
 Our CRM programme is a reflection of what is embedded in our CRM
vision.
Customer data Customer data  We have multiple sources of customer data including but not limited to
volumes and branches, internet, post call survey via the call centre, new application
velocity forms, website, facebook page, etc.
 We have efficient processes and tools that help us manage the high
velocity of data we receive.
Customer data  The data we receive tend to be up to date.
quality  The data we have is rich as it captures a lot of details about individual
customers.
 With this data, we have created customer preference centres to allow us
to better engage with our customers.
Customer data  We have a central data repository that integrates all the customer data
storage and mining across the various companies platforms into a single platform.
capabilities  We have a sophisticated data analysis tool that enable us to analyse
large data and to make recommendations to the business.
203
8.3 Implications
This study has managerial, theoretical, methodological, conceptual and societal

implications.
8.3.1 Managerial implications
There are several management implications that follow from this research on
CRM implementation in the banking and mobile telephony sectors of Nigeria and
South Africa.
First, it can be concluded from the research findings that although there may be
some similarities in CRM implementation factors between high income and
emerging markets; there are clear differences that any marketer interested in
emerging markets should be cognizant of. These are concerned with the
contingency factors for CRM implementation in emerging markets. The study
uncovered five main factors; namely operating structure of the company,
recruitment and training practices, multichannel integration, normative
isomorphisms and customer data quality; which management needs to take heed
when implementing their programmes in emerging markets. Thus, the necessity
to adapt one CRM strategy to the emerging market context can not be
overstated, specially if companies want to increase their CRM success rate.
Moreover, the scarcity of research on CRM in Africa means that Managers never
really had the opportunity to consider a model of CRM developed by academic
scholars that could be relevant to their contexts. This study has closed this gap
by proposing a new conceptual model for CRM implementation that could be
used by decision-makers to enhance the success rate of their programmes. This
model brings to the fore three key dimensions of CRM namely organization,
customer data and institutions.
204
Second, before embarking upon a CRM programme, companies need to know
what they are getting themselves into. This will enable them to better manage the
business expectations in terms of expected CRM revenues, timelines and overall
impact on customer delight and loyalty. In response to this, it is proposed that
companies that are viewing CRM as a potential source of competitive advantage
should perform a CRM readiness assessment as this will shed some light on the
potential success or failure rate to be achieved. Consistent with this, it is
suggested that they apply the newly developed heatmap of CRM success and
failure. This heatmap is a tool that uses the company industry maturity level and
lifestage to predict its potential level of success and failure rate. In addition to
this, it provides management with a specific strategic approach to adopt
depending on their position level on the heatmap. It is undoubtedly a practical
and useful tool that can help management to mitigate the failure rate of their
programmes; and most importantly, to better manager CRM expectations in the
company.
Finally, the CRM index which is a composite of 16 indicators gives company a set
of detailed measures to appraise their CRM performance. This is an incredible
opportunity for companies to start identifying their weak and strong points as part
of their CRM development and implementation programme and to swiftly address
issues that are misaligned with the identified CRM measures or accepted CRM
practice.
In conclusion, both multinational corporations expanding into Africa and local

companies in banking and mobile telephony sectors can find this study insightful
and its application very relevant to their contexts. Similarly, other industries and
emerging markets can be inspired by these newly proposed models of CRM
implementation in Africa.
205
8.3.2 Theoretical implications
The CRM literature pays particular attention to the organizational factors linked
with CRM success. As a result of this, it recognizes that these organizational
factors are drivers of CRM practices (Foss et al., 2008; S. King & T. Burgess,
2008; Mendoza et al., 2007). Moreover, a compilation of studies on CRM
(Chakravorti, 2009; Coltman et al., 2009; Gouthier & Schmid, 2003; Keramati et
al., 2010; Wang & Feng, 2012), marketing (Boulding & Christen, 2008; Golder &
Tellis, 1993; Ortega & García-Villaverde, 2011) and management (Fatima et al.,
2011; Holtbrügge et al., 2010; Jiang & Zhao, 2012; Kunc & Morecroft, 2010) as a
whole has been developed from the resource-based view (RBV) approach .
Despite the general tendency to have RBV as the main theoretical lens for CRM
studies as shown above, recently published research conducted by Kirca et al.
(2011) demonstrates that the institutional theory is gaining support from the
broader marketing community, particularly with regard to justifying how foreign
firms behave in host countries. Hillebrand et al. (2011) point to a similar
conclusion when they suggest that institutional processes can be important in
explaining the adoption of CRM practices. This theory focuses on how social
pressures from outside organisations influence the structures and practices of
organisations.
In general, Institutional theorists suggest that organizations are under pressure to

adapt to and be consistent with their institutional environment if they are to have
a sustained competitive advantage. Whilst Hillebrand et al. (2011) acknowledge
that institutional forces can be the underlying reason behind the adoption of CRM
practices, they only studied one of the types (namely mimetic) of organizational
isomorphisms that can be adopted by companies. In the same vein, Humphreys
(2010) studies the casino and gambling industry by focusing on regulatory and
normative isomorphisms.
In light of the above, it is apparent that the institutional theory has primarily been
applied to high income, industrialized markets as opposed to emerging markets
206
and that prior research in management practices have yet to address in a single
study all the three types of isomorphisms as defined by (DiMaggio & Powell,
1983) namely Coercive, mimetic and normative.
This study filled this gap by investigating how coercive, normative and mimetic
motives are driving companies to adopt given CRM practices in the banking and
mobile telephony sectors of Nigeria and South Africa. Interestingly, whilst the
normative motives were supported in this study, the coercive motives as
discussed by DiMaggio and Powell (1983) did not find support in this research.
In other words, companies in both Nigeria and South Africa did not feel coerced
to adopt CRM practices against the fear of being sanctioned by the industry
regulator or any institution. They viewed the laws, government policies and
regulations as aligned with sound business practices. The ongoing engagement
between the government and the business communities also ensured that new
policies that are designed and implemented to improve the service level
standards of service providers have taken into consideration the needs of the
customers, the business communities as well as the national priority areas. The
research findings also lend support to the proposition that mimetic behaviors are
driven by the type of industry the company operates into. For example, it was
found that regardless of their countries, companies in emerging markets that are
in the banking industry tend to mimic the behavior or actions of their competitors
or any other players in the markets that is perceived to be doing something good.
On the contrary, those that are in the mobile telephony sector did not embrace
the idea of having a “me too” strategy; but rather, they focused on always being
ahead of their competitors by constantly designing new solutions that could be
attractive to their targeted audiences.
Moreover, a key contribution of this research is the application of theories

triangulation throughout the research process and in particular in the analysis of
the data. The three theories that were applied include: (a) the contingency
theory as the overarching theory since it indicates that many theories can be
used to explain phenomenon that are evolutionary; (b) the institutional theory
207
as discussed above; and (c) Hofstede’s fifth value dimension of national
culture of short-term vs. long-term orientation.
Contrary to Hofstede’s fifth value dimension of national culture theory also

referred to as “confucian dynamism” that posit that companies operating in
countries with a long-term orientation are more likely to be innovative than those
operating in those countries that are characterized by a short-term orientation;
this study revealed that innovation can also come out of companies that operate
in short-term oriented cultures. A case in point is NITEL, a company operating in
Nigeria which has a short-term oriented culture (Fang, 2003) , but it was the best
CRM performing companies out of the four companies that were studied. NITEL’s
success formula was the innovation it was able to apply to its products, customer
solutions and basically to anything that reinforced its customer-centric culture. It
can thus be deduced that national cultures’s time orientation in emerging markets
does not have any effect on the company’s orientation. These two types of
orientations must be dissociated.
8.3.3 Methodological implications
Whilst most researches in marketing have up to now extensively focused on

quantitative analysis (Deshpande, 1983; Ranaweera & Prabhu, 2003; Rootman,
Tait, & Bosch, 2008; Tseng & Huang, 2007; Yanamandram & White, 2006), this
study follows a qualitative approach by drawing on multiple sources of data that
were then triangulated in order to make solid concluding remarks on CRM
implementation in emerging markets.
This study concentrated on a multiple embedded case analysis of CRM

implementation in South Africa and Nigeria with an emphasis on the banking and
mobile telephony sectors; whereas the extant literature primarily delves into
CRM implementation in one country such as China (Deng et al., 2010;
Shengdong & Xue, 2011), India (Adke & Dhande, 2011; Haridasan & Venkatesh,
2011; Khare, 2010), Taiwan (Fan & Ku, 2010; Lee et al., 2010), Saudi Arabia
208
(Almotairi, 2010), and the United Kingdom (Eid, 2007; Rogers, 2005; H. Wilson et
al., 2002).
Moreover, inferences from this study were not just drawn from four within case
analyses; but also from cross-case analyses that compared how the identified
factors linked to the organization, its institution and customer data performed in
each company. The rich data that was generated can help in addressing the
question of analytical generalisability often identified as a weakness of qualitative
studies.
8.3.4 CRM conceptual implications
As purported in the earlier part of this research report, the discourse on CRM has
made a tremendous contribution to CRM in high income, industrialized markets;
whereas emerging markets have lagged behind. This study attempts to address
this imbalance. The originality of this study thus lies in it highlighting the
peculiarities of CRM in Nigeria and South Africa, thereby establishing that these
markets are different from high income, industrialized markets. In addition to this,
the study defines the contingency factors that can enhance or impede on CRM
success in these emerging markets. The proposed CRM conceptual model
discussed earlier makes a great contribution to the literature on CRM in emerging
markets.
Moreover, the study identifies new organizational, institutional and customer

factors that are relevant for effective CRM implementation in emerging markets
and that have not previously been covered in the CRM literature. These new
factors are: Operating structure, normative isomorphisms, customer data
volumes and velocity, and customer data quality.
209
8.3.5 Societal Implications
This study makes a unique contribution in the field of social innovation because it
stresses that Africa is unique and organizations that are to be successful need to
consider creative, innovative ways to engage with their customers. By doing so,
these companies need to employ new ways to engage customers. This is evident
in the research findings as it was shown that thanks to innovation, companies
were able to empower disadvantaged communities by creating jobs whilst
involving these communities in the profit making scheme that they created. For
example, as part of their CRM programmes these companies found creative
ways to penetrate the informal market by bringing them solutions that meet their
needs and their budget whilst engaging them in the co-creation process of future
customer solutions. Naturally, this process encouraged organization to be
cognizant of the environment in which they operate when developing new
products or servicing their customers. It reinforced the necessity for organizations
to perpetually comprehend the dynamics of the markets they target and to
position themselves as good corporate citizens that only embark upon
sustainable activities that positively impact on the lives of their communities. As a
result of this, this study has cast new light on the linkage between CRM and
corporate social investment. It has heightened the importance of corporate social
investments in building strengthening relationships with customers. As pointed
out by one the research participants: “I have to have a bit of a community
dynamic in my (CRM) approach. I can't just come here and put out products. It's
got to be relevant. It's got to talk to the target market and it's got to have a bit of
societal flair”.
210
8.4 Limitations
Prior to suggesting directions for future research, the limitations of this study
need to be pointed out. A few limitations consisting of theoretical and
methodological applications to this study are discussed below:
This study only focused on the fifth dimension of Hofstede’s value dimensions of
national cultures and purposefully disregarded the other five dimensions. Whilst
this fifth dimension of confucian dynamism has not been applied to prior CRM
research in emerging markets, it can be useful to research all six dimensions in
the future.
Another limitation of this study is inherent in the challenges associated with

qualitative research where the recorded interviews can not always be transcribed
verbatim because of the poor audio quality. In addition, the sample size, although
not a big issue in qualitative research, was limited to two industries, two
countries, four companies and 66 respondents. A larger sample size could have
perhaps given us not just more data; but also variety in the responses from the
research participants. Lastly, this study was based on large organisations with
sizeable revenues and a presence in other international markets. As a
consequence, small and medium-sized businesses that had implemented CRM
programmes were not considered.
On top of the above-mentioned limitations, this study mainly considers the

supply-side of CRM implementation. This means that the research participants
were from the company (including technology consultants) that assisted with the
implementation or implemented the programme. Customers who were directly
affected by the activities of this CRM initiative were not included in the sample.
Consequently, their opinions were not taken into consideration throughout the
study. This is another limitation of the study that is worth highlighting particularly
since a large number of CRM studies have not primarily focused on the process
211
of CRM but rather on the effect that CRM has on service quality which in turn
affects customer loyalty and satisfaction (Santouridis & Trivellas, 2010), on the
necessity for actionable insights that can drive strategies applicable to either
individual or segments of customers (Peppers & Rogers, 2011) and the
importance of co-creation of value during the relational exchanges between
companies and their customers (K. Chan, 2008; Cova, Dalli, & Zwick, 2011;
Christian Grönroos, 2011; Payne et al., 2008; Vargo, Maglio, & Akaka, 2008).
8.5 Directions for future research
This study brings points to a number of avenues for future research not just
because of the limitations of the study; but also because of the fact that this
study’s main focus was on theory building rather than theory testing. Whilst this
research has been helpful in the development of sets of CRM research
propositions and an index, these need to be tested. This creates an avenue for
future quantitative research to be undertaken.
One of the key contributions that this study has made has been in the
identification of contingency factors of CRM implementation in Africa as well as
the discovery that corporate social investments should be linked to the CRM
programme. This raises a few questions that can be investigated as future
research topics:
 What is the degree of impact that each identified CRM factor has on the
overall success of the CRM program. By understanding the weighting of
each factor, marketers can best direct their efforts and allocate resources
to those factors that have the greatest impact on their bottom line.
Specifically, they will be in a position to measure responses by using
scales for the identified factors.
 How does a company measure the impact of its Corporate social
investment activities on its CRM programme?
212
Other potential useful themes can include:
 The effects of Hofstede’s six value dimensions of national culture on CRM

implementation in emerging markets.
 CRM Implementation in Small Businesses.
 CRM with a societal flair.
 A contrasted view of CRM implementation by companies and customers.
In addition to the above, further research areas could include other countries in
Africa or other industries such as the Hospitality and the Retail industries. A
longitudinal study to measure the success of a CRM implementation over time
could also be undertaken.
213
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Appendix A:
DISCUSSION GUIDE
229
Overview
Nathalie Beatrice Chinje, a PhD Candidate at Wits Business School in Johannesburg,

South Africa, is undertaking research in the field of Customer Relationship Management
(CRM) under the supervision of Prof. Geoff Bick. The topic of her research is:
“Customer Relationship Management (CRM)

Implementation within the Banking and Mobile
Telephony Sectors of Nigeria and South Africa”
CONFIDENTIALITY
Your opinion on the different questions below is valued. Please rest assured that all
information provided would be treated with the utmost care and confidentiality. Neither
your name nor the name of your company will be mentioned in the analysis and in the
final research report.
Please tick the category that is most applicable to you:
 I am a CRM user in a company:
 I am a CRM technology vendor/ Supplier:
 I am a CRM project manager in an organisation:
 I am a CRM Consultant:
 I am a CRM sponsor/ Lead/ in an organisation:
 I am a CRM implementation Facilitator:
 Other, please specify---------------------------------------------------------------------
230
1. Setting the scene
1.1 Can you please define what the concept of “CRM”/”Relationship” means in your
company?
----------------------------------------------------------------------------------------------------------------------
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----------------------------------------------------------------------------------------------------------------------
1.2 What role did you fulfill as part of this CRM initiative?
 Strategy developer
 Strategy implementer
 Both of the above roles
1.3 How did you go about implementing CRM?
----------------------------------------------------------------------------------------------------------------------
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----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
1.4 How would you rate the success of your CRM programme?
1 2 3 4 5
(1: Excellent; 2: Good; 3: Average; 4: below average; 5: Poor)
Why----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
231
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
2. CRM Success Factors
2.1 What critical factors impeded on or enhanced your CRM success/failure?- Please
comments on each of them e.g. Socio-cultural, political, legal, regulatory and
compliance, etc.
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
3. Institutional context
3.1 To what extent were these institutions able to influence your CRM approach?
Institutions Areas of influence Degree of Impact on CRM

influence Approach
Government
authorities/bodies
Professional, trade
and industry
associations
(Direct marketing
Association,
Advertising Bureau
Standards, Saarf,
Pamro, Media )
Your competitors (in

banking/mobile
telephony) or any
other multinational
company in a different
232
industry
Labour organizations
(Unions)
Religious institutions
Other
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
4. Country context
4.1 What made CRM implementation in your country unique? Expand on the
peculiarities of the Nigerian/South African environment, its customers, etc.
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
4.2 How did you handle the challenges you were faced with? Please also mention any
CRM opportunities identified during the CRM implementation process
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
233
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
5. CRM Measures
5.1 What were the measures of success of your CRM programme?
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
5.2 How did you assess your CRM success?
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
6. Lessons Learnt
6.1 List 5 to 10 key lessons learnt from the implementation of your CRM programme
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
6.2 Any other comments?
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
234
7. Demographic data
7.1 Number of years at your company-------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------
7.2 Number of years in the current position-------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------
7.3 Total CRM Experience- in years (in and outside your company):--------------------------
Thank you for your feedback. I sincerely appreciate your honest opinions and will take
your input into consideration. If you have any comments or concerns about this survey
please contact:
Nathalie Chinje
Email : nathinno@gmail.com Cell: +27 83 218 3300
235
Appendix B:
META-ANALYSIS OF CRM BENEFITS
236
Authors/Date Core CRM Benefits
Buttle (2004)  Reduces cost to serve
 Increases revenue
 Increases customer satisfaction and loyalty
Chen and Popovich (2003)  Increases data sharing across selling organization
 Improves customer service
 Improves customer targeting
 Enables better personalization of marketing messages
 Provides better self-service options for customers
 Improves buyer-seller integration
Croteau and Li (2003)  Enables customization of products and services
 Provides customers a “one-to-one experience
 Improves sales force efficiency and effectiveness
237
 Enables customized marketing plan for each customer
Eggert, Ulaga, and Schultz (2006)  Improves support for product development
 Increases supply-chain efficiencies via personal contact
 Enhances supplier know-how
Jones, Brown, Zoltners and Weitz  Improves customization of services and product offerings
(2005)
 Enhances ability to create long-term partnerships
 Improves sales person efficiency and effectiveness
Jones, Stevens, and Chonko (2005)  Improves ability to find, obtain and keep customers
 Increases salesperson efficiency
 Assists in gathering competitive intelligence
 Coordinates communication
 Enables salespeople to have a lifetime value perspective
238
Jones, Sundaram and Chin (2002)  Improves sales force efficiency and effectiveness
 Improves pricing
 Reduces cost-to-serve
Leigh and Tanner (2004)  Improves sales force effectiveness and efficiency
 Enables knowledge management
 Improves knowledge sharing within the selling firm
Park and Kim (2003)  Simplifies customer support
 Reduces cost-to-serve
 Improves product differentiation
Parvatiyar and Sheth (2000, 2001)  Improves customer segmentation
 Enables key account management and business development
 Improves customer loyalty
239
 Improves cross-selling/up-selling
 Enables co-branding, joint marketing and strategic alliances
Reinartz, Kraft and Hoyer (2004)  Improves pricing
 Enables segmentation based on economic value of customer
 Improves resource allocation to accounts
Rigby, Reichheld and Schefter (2002)  Improves customer acquisition and retention efforts
 Enhances ability to offer right products and services to right customer
 Enables companies to pursue “best processes”
 Motivates employees to foster customer relationships
Rigby and Ledingham (2004)  Improves information sharing within the selling company
 Automates all aspects of customer relationship cycle (development of

offering, sales, superior experience, retention and win-back, and targeting
and marketing)
240
Rivers and Dart (1999)  Reduces administrative duties
 Improves sales effectiveness
Sabri (2003)  Enables personalized products and services
 Improves sales force efficiency
 Enhances product development
Sheth, Sisodia and Sharma (2000)  Improves customization of marketing efforts to individual customers
 Enhances ability to understand costs
Sheth and Sharma (2000)  Improves the financial efficiency of marketing efforts
Spekman and Carraway (2006)  Enhances decision-making
 Improves supply-chain planning and integration
Tanner, Ahearne, Leigh, Mason and  Improves customer segmentation and valuation
Moncrief (2005)
 Enhances acquisition, development and retention of customers
241
 Enables better allocation of resources across the customer portfolio
 Enhances communication across multiple selling channels
The Sales Educators (2006)  Enhances customer knowledge and feedback
 Supports new product/service development
 Improves customer solutions and relational values
Thomas, Blattber, and Fox (2004)  Enables companies to win-back lost customers
Thomas, Reinartz and Kumar (2004)  Improves marketing effectiveness
 Enables customization of products and services
 Improves customization of marketing efforts to individual customers
Verhoef (2003)  Improves customer commitment, satisfaction and loyalty
Wilson, Daniel and McDonald (2002)  Improves channel choice
 Allows multi-channel integration
242
 Enables individualized pricing
Winer (2001)  Enables better customer attraction, conversion and retention of target
customers
Zikmund, McLeod, and Gilbert (2003)  Improves customer focus
 Improves retention efforts
 Increases share of customer
 Enhances long-term profitability
 Enables continuity across channels
 Personalizes service
 Enhances satisfaction
Source: (Richards & Jones, 2008)
243
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Customer Relationship Management (CRM) Implementation within the Banking

Thesis · January 2010

The user has requested enhancement of the downloaded file.

Nathalie Beatrice Chinje

(Candidate Number: 500189)

Supervisor: Prof Geoff Bick

A thesis submitted to Wits Business School, Faculty of Commerce, Law

the Degree of Doctor of Philosophy.

We hereby certify that this Dissertation entitled “Customer Relationship

Nathalie Beatrice CHINJE

Consequently, the problem this research addresses is the lack of adaptation of

Key words: Africa, banking, cross-case analysis, CRM, Emerging Market,

Second, I would like to thank the international institutions that hosted me as an

List of Figures ............................................................................................................ xiv

List of tables ............................................................................................................... xv

List of appendices..................................................................................................... xvii

Abbreviation and acronyms ..................................................................................... xviii

CHAPTER 1: INTRODUCTION ................................................................................... 1

1.1 Context of the Study ..................................................................................... 1

1.2 Problem Statement ....................................................................................... 7

1.3 Purpose Statement and Key Research Questions ..................................... 8

1.4 Knowledge Gap ............................................................................................. 9

1.4.1 CRM conceptual gap ................................................................................ 9

1.4.2 Theoretical gap....................................................................................... 10

1.4.3 Methodological gap ................................................................................ 11

1.4.4 Managerial gap ....................................................................................... 11

1.4.5 Societal gap............................................................................................ 11

1.5 Brief Research Methodology ..................................................................... 12

1.6 Thesis Structure and Map .......................................................................... 14

2.1 Contingency Theory ................................................................................... 17

2.1.1 Overview and definition of the contingency theory ................................. 18

2.1.2 Application of the contingency theory to the broad management context19

2.1.3 Limitation of the contingency theory ....................................................... 20

2.1.4 Relevance of the contingency theory to this study ................................. 21

2.2 Institutional Theory .................................................................................... 22

2.2.1 Overview and definition of the institutional theory .................................. 22

2.2.2 Application of the institutional theory to the broad management context 25

2.2.3 Limitation of the institutional theory ........................................................ 26

2.2.4 Relevance of the institutional theory to this study................................... 27

2.3 Culture Theory: Hofstede’s Fifth Value Dimensions of National Culture29

2.3.1 Overview and definition of the institutional theory .................................. 32

2.3.2 Application of the Hofstede’s theory to the broad management context . 33

2.3.3 Limitation of the Hofstede’s theory ......................................................... 34

2.3.4 Relevance of Hofstede’s fifth value dimension to this study ................... 35

CHAPTER 3: LITERATURE REVIEW ...................................................................... 38

3.1 CRM Concepts Definition ........................................................................... 38

3.1.1 What is a relationship? ........................................................................... 38

3.1.2 CRM defined .......................................................................................... 41

3.1.3 CRM- related concepts ........................................................................... 45

3.2 Antecedents to Successful Customer Relationship Management ......... 49

3.2.1 The high income, industrialised markets perspective ............................. 49

3.2.3 Synthesis and key insights ..................................................................... 56

3.3 Benefits and Challenges of Customer Relationship Management ......... 60

3.3.2 Benefits .................................................................................................. 61

3.3.3 Challenges ............................................................................................. 63

3.4 Market Analysis .......................................................................................... 66

3.4.1 Nigerian and South African contexts ...................................................... 66

3.4.2 Characteristics of the banking and mobile telephony sectors ................. 71

CHAPTER 4: RESEARCH METHODOLOGY .......................................................... 82

4.1 Introduction ................................................................................................. 78

4.2 Research Design and Paradigm ................................................................ 81

4.2.2 Research paradigm ................................................................................ 83

4.3 Population and Sample .............................................................................. 86